GOLD/SILVER GETTING READY FOR LAUNCHGold and silver are finalising their correction now. We might have seen the correction lows already. If not they should happen in the next 2-3 weeks. The gold-silver ratio just made a new high above 87 and reversed quickly last week. From a technical perspective the high both on the daily, weekly and monthly indicators was not confirmed by momentum indicators. This is called bearish divergence and is an important sign of a market turning down. I have often said that silver is the leading indicator for the precious metals. Thus silver will take the lead in the coming precious metals bull market. It could be that we saw the turn already last week. If not it should happen later in May. I normally dont go in to detailed technical analysis and it makes no difference as regards the long term very bullish fundamental position of the metals and the bearish outlook of stock markets. So the metals are soon ready to start the most spectacular bull market that the world has ever seen. This market is like a coiled spring and we will see rapid moves to the upside in both gold and silver. The first target for gold, which could be reached quickly, is $1,600. Silver will probably go to at least $25 at the same time. As I discuss at the beginning of the article, a higher gold and silver price is sadly associated with difficult conditions in the world, both economically and socially. But initially the move will happen before the difficult times start. PROTECTION IN GOLD & SILVER AT LEAST 25% OF FINANCIAL ASSETS. Wealth preservation investors must remember that the forecasts above are about short term timing and not about protecting your wealth. The risks in the world are now of a magnitude that any serious investors, who wants to avoid a total annihilation of his wealth, must reduce his exposure to all the bubble assets, stocks, bonds and property, as well as to the banking system. Gold and silver have always been the ultimate insurance in any period of crisis. Since the coming collapse is likely to be greater than anything seen in history, the protection against the present risks in the system must also be greater. In these circumstances, I consider that 25% in physical gold and silver is an absolute minimum. I know it might sound dramatic to many people but what is going to happen to the world economy and financial markets will also be spectacularly dramatic. Therefore it is absolutely essential to hold adequate protection. Egon von Greyerz Founder and Managing Partner Matterhorn Asset Management