"2) Silver will reach $50 per ounce, probably in Q1 2011. It will then take a breather by moving sideways, trading in a range between $50-$38. It will do so in order to consolidate its tremendous gains, which if my $50 target is reached will be a more than three-fold increase in price from the year’s low of $14.82 in 2010.
3) The gold/silver ratio will continue its downtrend. It will break below 40 during Q1 as silver soars in a massive short squeeze. The ratio is likely to reach 30 during 2011, and I do not expect it to climb back above 52.
4) This year will be a great one for the mining stocks, which have been out of favor all decade long. The bear market in mining stocks began with the collapse in Bre-X back in 1997, and it ended with the collapse of Lehman Brothers, when the juniors were totally decimated and even the best mining stocks were selling at unbelievable values. Consequently, I expect the XAU Index will exceed 300, and I expect most of that gain to occur in the first half of 2011.
So my recommendation for 2011 is the same as it was for this past year, and in fact is the same as it has been all decade. Continue accumulating the precious metals, and if you are so inclined to take the investment risk, the mining stocks as well. Focus on owning tangible assets that make sense – gold, silver, useful commodities and the shares of well-run companies that produce these things. Avoid the dollar and other currencies. Avoid all government paper, and if you own a corporate bond, make sure it is convertible into equity.
Become self-reliant, and most importantly, do not rely on any government. Learn from those who were not prepared for Katrina. Even though they lived in a hurricane zone, they thought they could rely on the government to help them, but everyone who ended up in the Superdome looking for help suffered as a result. A financial Katrina is coming, and I think it will hit in the first half of 2011. It will be an unprecedented crisis because the US government is tapped out and the serial bailouts of governments and banks worldwide are coming to a head.
As a result, government policies that have led to monetary debasement for decades are going to accelerate in 2011. Be ready for it. If governments continue to follow the wrong policies and make the wrong decisions when confronting some critical moments in the months immediately ahead, then the sky is the limit for gold and silver as national currencies hyperinflate and approach a total collapse. Consequently, everyone needs physical gold and physical silver now more than ever."
Well, one thing's for sure: Silver is coming back from the low 29's and is noe in the high 29's, maybe this nightmare day will close better than I expected. Hats off to those of you who bought at 35.80, you are much better traders than me.
hell if thats the case buy guns too! It makes sense that the gov. would drive everyone into precious metals because their banks GS and JPM own most of it and they can issue a decree and confiscate any phyical metals you own. The US Gov working overtime for their fellow countrymen!
A free American can't own too many guns it's protected by the Constitution. AS for as the govt giving orders to confiscate gold and silver, what a joke, does anyone think that the govt wants a civil war?