fr. bob moriartyOn May 16th 2012 the XAU over Gold touched a ratio of .0906, the lowest it’s been since the dismal days of October 2008 when the world was really ending: gold and silver crashing. On Jul 25th, as I write, the ratio touched slightly below that point.
We’ve seen a clear bottom in silver. We’ve seen a clear bottom in the XAU over Gold ratio and I think we've seen a clear bottom in the metals and the shares.
If you spend more than an instant a day worrying about the manipulation of gold and silver, you are chasing a fantasy. How did I call the top in silver and gold to the day in 2008? How did I call a top in silver to the day in 2011? How did I call a bottom to the day in May of this year after saying exactly what it was going to look like weeks in advance? If the most important factor in the movement of gold and silver is manipulation, no one could call tops and bottoms unless they were the one doing the manipulating.
According to the cheerleaders, you need to spend all yourtime worrying about how the Bank of England bailed out JP Morgan of a chump change position in silver that had to be making money. According to the cheerleaders, every time silver or gold go down, it’s because the “CARTEL” made it go down and every time it goes up, it’s because GATA is manipulating it higher.
Ignore the noise, there is a lot of it and the guys who parrot the cheerleaders and their nonsensical positions are all losing money. My readers on the other hand like making money.
I think the junior mining sector will be the place to be for the next 12-18 months. If I see a top coming, I’ll warn you.
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Bob Moriarty
President: 321gold