[How I Look When I've Been In A Fight]
Kong Sez

They Don't Want Us Talking
Any More

Press The Start Button To Play Sound Again.

Have Speakers Turned On

Allow Large Files Time To Download If Not Using Broadband or DSL

To Best Enjoy Streaming Video and Sound, Configure Windows Program for:
Real Player, Quick Time, and Windows Media Player

Gold Will Explode To The

Moon !

Kong Sez:

    Well, folks, here's another commentary on gold. Everyone...and I mean everyone who writes substantial financial newsletters, is writing about Gold! Have you gotten yours yet? Here's why it might be getting pretty late:

The Daily Reckoning
Wednesday, December 2, 2009

The Daily Reckoning PRESENTS: So you bought a few ounces of gold back when it was at $250 an ounce. Good for you. Now what? Do you sell your ingots and buy a sports car with the profits...or trade in your old clunker and buy more of the metal? Is it time to buy or sell? Bill Bonner offers some observations in today's reckoning. Please enjoy...

Gold Gone Wild
By Bill Bonner
London England

Yesterday, gold closed at $1,200. Long-term Daily Reckoning sufferers can finally hold their heads up. We bought gold at the beginning of the bull market. New readers, with no gold buried in their back yards, may wonder: is it too late?

Here is a quick answer: no. We're still a long way from gold's ultimate destination. Our 'Trade of the Decade' was to buy gold on dips and sell stocks on rallies. The idea of that trade was that gold and stocks were going in opposite directions. Stocks were supposed to go down. Gold was supposed to go up. They would meet at some point, we imagined.

But lately they've been going in the same direction. Yesterday, for example, stocks rose with gold; the Dow added 126 points.

Which poses a bit of a dilemma. We think stocks are more likely to go down than up. Will gold go down too? Yes, probably.

Does that mean you shouldn't buy gold here? No, not necessarily. If you're trading, we'd suggest you wait. Gold is ready for a correction.

But it is usually a mistake to trade in an out during a major bull market. If the trade goes against you, you end up sitting by the sidelines as the market roars forward. You miss the best part.

Gold's best part is still ahead. And this is not just a bull market; this is a fortune maker. Gold still hasn't entered the bubble phase. It is just a very strong bull market. Eventually, it will soar...adding $100 in a single day. It will take our breath away. You want to be in it when that happens.

But is $1,200 the best price you can get to enter the gold market? Probably not. But it's not a bad price. You can wait for a better one; but don't wait too long.

John Hussman puts the odds of a major market crash sometime in the next 12 months at 80%. If stocks go, gold is likely to go down too. And it could stay down for a long time.

We keep our Crash Alert flag flying...and have a hunch the crash will come sooner rather than later. Day after day, the bubble gets bigger...and the pins get closer. Greece? Britain? The US?

Real estate? GDP? Bond sales? Christmas sales? So many pins...so little time.

One of the biggest pins is the record borrowing by governments. The longer it goes on...the bigger, sharper and closer the pin becomes.

Dubai was nothing...like getting stuck by a mosquito. It itches. It swells. But it does no lasting damage. It could be much worse. Now, the government of Dubai says that Dubai World is on its own. Good luck to the lenders.

Those Arabs are pretty smart. If the US feds had only done that with AIG, GM, Fannie Mae and other big debtors...the whole thing might have blown up and blown over ...and now we'd be picking up the pieces and getting back to work.

Instead, the pols and central bankers trod in where angels and sensible investors feared to go at all. Now, they're wondering how to tread out.

Germany announced that its deficit would not be as big as expected. Instead of 49 billion euros, it will be only 39 billion - below 3% of GDP this year. France says it's bringing its deficits down too - to less than 3% of GDP by 2013.

The US and the UK, on the other hand, are out of control - with deficits over 12% of GDP and no credible plans for substantial reductions. As we reported last week, these deficits are largely structural - that is, they are the product of many years of mismanagement, not just this year's crisis-respond claptrap. It's hard to bring them down because they include public health, unemployment, social security and defense measures that are very difficult to stop.

Yes, stocks will react, eventually. Gold will come down with them. Then, at some point in the future, gold and stocks will de-couple...and gold will head to the moon.


Bill Bonner
for The Daily Reckoning

Kong Sez:

    Folks! Gold just reached $1,250 an ounce. But note from above: It will go down when the market starts falling in earnest; then, decouple, and rise to the moon.

[Ben Bernanke Shrank The Dollar!]

And While I'm At It, I will Explode Gold To The Moon!

[Gold Bars]


    Incidently...Dr. "B" cautions me, and I am passing it on to you. "Get a hand–cranked grain mill!" By now folks, you know why:

[Grain Mill]

When Violence Strikes, Women Are Always A Target

Press The Start Button To Play Sound Again.

Get Prepared!

    ... And For Those Who Missed The Recent ChemBioUpdate, Stock! Click Here.

Use It Up !
Wear It Out ! Make It Do !
Do Without !


It's Still Coming!
Subduction: One Plate Goes Under Another As The Other Goes Over The Former.

Interestingly...Early Church Saints Said: "Mountains Will Roll Over Another." This Sounds Like They Saw Subduction.


The Second Ammendment!

Learn This...Memorize This...Let It Become a Part of You! Bring It Back When The Terrible Chaos Is Over...If There Is Something To Come Back To.

[Running For Your Life]

In The Meantime

Run For Your Life

From now on, Folks, it's gonna get pretty rough! In fact, downright cussed.
Mr. Ugly Is Showing Now!

But For Now...

[Running For Your Life]

Keep Running

Keep Your Purse and Scrip With You—Luke 22:36

And Now

Get Two Guns—Luke 22:36–38

Before The New Dude Won't Let You Have Them

Times in America will change rather abruptly.
Your WebMasters suggest you check your
Medicine Supply/List

We Feel This Is Going To Be A Long, Hard Siege
Get Prepared...Time Is Short Now...
Other WebPages of Interest:

Purifying Water ¦ When The Hell Breaks ¦ Gun Page

Galactic Plane

Soon..The Rocks Will Fall...See The Galactic Plane

[When The Rocks Fall]
The Impact and Its Consequences

Ronking & Gronking In Distress
Press Play To Start
Mass Extinctions Occur Around This Time Of Passing Through The Galactic Plane
The Earth Is Also Coming To The End Of An Age, As The Precession Ends

The Rocks Are Coming

[The Rocks Are Coming]

A City Being Stoned

[A City Being Stoned]

In accordance with Title 17 U.S.C. Section 107, any copyrighted work in this message is distributed under fair use without profit or payment for non-profit research and educational purposes only. [Reference: Cornell Law School]

In An UpComing Issue:

To Be Announced ...

Something You Need To Know For What's Coming

Register For Free Updates Here

Return To Where You Were