QUESTION:   You were correct and gold collapsed into June when the gold promoters kept

saying buy. Was the low in June sufficient for the major low? Do we still need to see $950?

ANSWER: Markets must move to extremes on both sides to provide the ENERGY for the

move in the opposite direction. The further gold would decline, the further it will rally. This is

what creates the energy. The MINIMUM targets I provided were 1) mid $1100 range and

2) June 2013. We have met that criteria.

So does this mean gold will rally from here? No, The biggest target in time is January 2014.

If January were a high at the $1421 level, then we are probably looking for that final low in

the months beyond. A January 2014 high would warn that we could see the worse case

scenario being the $950 with the furthest time target December 2015/January 2016. A

January 2014 new low  would have the potential for the final low. However, you must

understand that capital is nearsighted. It focuses largely on one thing at a time. You cannot

look at just gold for the answer. This is a dynamic collective economy and everything must

be lined up.

Please understand. This is not my OPINION nor is it based upon what I “think” will

happen. That is really irrelevant. We all have “opinions”. The important aspect is that you

understand HOW markets move so you participate in everything instead of waiting for just

a single event. There are no singeltons in life. It is what it is – never what it might have

been, could have been, or should have been.

The bubble top in the Nikkei for 1989 began from this same turning point 1987.8 and

culminated in 1989.95. You see the sharp crash there in late 1987.The Nikkei about

doubles in this short period of time. So what we are looking at here with a possible capital

concentration in the US share market that could double by 2015.75 is not unusual. This can

push the dollar higher and that will be negative for gold. Private assets rise and gold will

follow the Dow Jones when capital is fleeing domestically from the Public to the Private

sector, That is the pattern in the Germany hyperinflation period as well – all tangible assets

rise. Those preaching the Dow will collapse by 90% and gold will rise do not even

understand history. That is possible when gold is the official money but money rises when

their is a lack of confidence in the Private sector – not the Public as we have with the

Sovereign Debt Crisis. If stocks collapsed, then the bonds will rally. That is the Great

Depression and the fundamentals were different. That is was gave birth to socialism. Today

it is the socialism that is collapsing. Those who claim there will be hyperinflation and the

Dow will crash are insane. If that were the case with hyperinflation, everything rises stocks,

real estate, and commodities.

These analysts are fixed on one relationship and the markets are dynamic. They do not

follow one relationship perpetually. Domestically capital flows between Public and Private

and within the Private from sector to sector. Internationally, Capital flows can be measured

by taking the Capital Account and subtracting the Current Account. If the capital is pouring

into the USA from 1) emerging markets, 2) Japan, and 3) Europe, then we end up with the

same conditions for a bubble top in the USA going into 2015.75.

Swinging a market to the extreme in one direction will then swing it further in the opposite

direction. That creates the energy and it is why the majority must always be WRONG!Then

if we have the failure for the FLIGHT TO QUALITY with capital rushing into government

paper, that is the condition necessary to send gold up and through the $2300 level that is

the 1980 high adjusted for inflation.

Those preaching the collapse in the Dow now to 10 cents on the dollar are insane. To do

that now send bonds up when there is no widespread sovereign debt crisis that the public

sees. Such a pattern simply cannot happen without everything lined up.