Dennis Gartman of the prestigious Gartman Financial News Letter has reversed a major call on gold. Three weeks ago, he said to sell because it was in a bear market. Now, he says he made a mistake and claims it is still a bull market for the yellow metal.
In spite what the finanical mainstream media says, none of the fundamental underpinnings of the gold market have changed. The Federal Reserve is printing money like crazy, with more “quantitative easing” to come from Europe and the U.S. later this year. We have nations facing huge deficits of 100+ debt to GNP, keeping their Interest Rates artificially low, with no room for error and no viable way to pay there way out of their troubles. Not to mention that it’s an Presidental election year, so there will be NO incentive at all for the government to begin making any meaningful, necessary budget cuts this year.
The Obama administration will be asking Congress to raise the debt limit in the coming days to raise the U.S. borrowing limit by $1.2 trillion. The move would mark the 3rd and final increase from the debt-ceiling deal reached last year by Congress. The question is, what compromise will be adopted that will allow for the US to avoid default by raising the debt ceiling? Raising the debt ceiling is the problem and not by at means a solution. The race between dropping revenues and increasing costs will not be settled by politicians that do not even understand the problem. There is no event that will turn the tide of the ramifications for poor economic management.
Horoscope and 2012 – 2013 Blackbox Forecast of SPDR GOLD TRUST-GLD, the world’s largest gold-backed Exchange Traded Fund launched in 2004.
Prediction: The bottom line is that the short-term government machinations that are fueling a false economic recovery in 2012 will eventually break down. There is no event that will turn the tide of the ramifications for poor economic management. Nothing can stop Gold, Silver, and the Swiss Frank now. The die is cast, gold is now headed to blast well past $2000, and onward to $12,000 by 2015.