Gold’s Warning Signs are Flashing!

Some times you have to call things as you see them.  Political ideologues are going after your investments.  You can either sit back and get sheared or you can wake up and realize that your feel good politics are threatening your way of life.  Now might be a good time to take off the blinders because gold’s warning signs are flashing!  “Change” is coming and it is going to be here sooner than you think.

It is apparent that gold has made a move out of the consolidation pattern that it has been in since mid December 2008.  Are we moving to a new all time high, or is this just another head fake?  Only time will tell the tale on that one, but my feeling is that this is the real deal that will take us past $1,245.

The time is right and all of the indicators are lining up for gold to move to new highs.  There are many reasons that indicate to me that we are entering the next major leg up in gold.  Some of them are technical indicators and some of them are related to the onslaught on personal and financial freedoms that are being mounted on the U.S.A by Comrade Obama (The Community Organizer In Chief) and the Progressives in Washington.

“Oblivitards” (Those who are oblivious to reality) will immediately dismiss my argument based on ideology. The simple fact of the matter is that political policy can affect the price of gold, or any investment for that matter,  just ask anyone who owned coal stocks before and after Comrade Obama was elected.

Some people don’t want reality to interfere with their Socialist Utopia, but trust me the reality is nowhere near what the ideologues are telling you.  Gold and Silver offer one of the last opportunities for you to protect what is left of your wealth from the looters that have taken over this government.  Don’t waste the little time that is left for you to take advantage of gold and silver before future highs become the next trading range lows.

In this article I want to point out some of the indicators that are flashing on the horizon as the train wreck approaches.

Technical Indicators

Gold has found solid buying at the $1,100 level. Each time gold nears this level physical gold has dried up and become very hard to find.  The result is that gold has a very solid base at $1,100.  This is extremely bullish for gold!

Gold Set To Break Out!

Gold has taken out three of the last four highs since it’s descent, that began in January, to its current trading range .  If gold takes out number four, $1,171.90, there is no resistance until $1,245.60. Gold should run straight to that level before it pauses to consolidate.

Political Considerations

Gold is getting a boost from the from the financial turmoil that surrounds Greece and the impact that it is having on the Euro.  When either Europe or the IMF step in just before Greece fails, will there be any money left to bail out Comrade Obama’s Banana Republic as the states of the U.S. start to fall like dominoes?

Kitco.com  Apr 9 2010 10:12AM

By Jon Nadler

Increasing worries about a possible Greek debt default undermined the jawboning offered by ECB President Jean-Claude Trichet yesterday and essentially relegated him to the role of a spectator in the crisis. The idea of a default (notwithstanding any likely rescues, should the apparently inevitable take place) kept up the pressure on the euro overnight albeit the dollar retreated a modest 0.10 on the index and was trading near 81.40 at last check.

As fear of a default morphed into expectations of a bailout, Greek bonds rose from their ashes for the first time in a fortnight and the euro also regained a modicum of composure. In fact, UBS analysts opined this morning that Greece will be knocking on the IMF’s door for help within days, “perhaps, over the weekend. The dawdling might thus finally come to an end and the die will be cast. The common currency was last quoted at 1.339 against the greenback.

Against this background of uncertainties gold prices climbed to three-month highs and also set new peaks in euro and pound terms as speculators see a dearth of alternatives in an environment where their local beleaguered currencies might continue to pay next to nothing in terms of interest. Meanwhile, word is that China might allow the yuan to rise by about 3% this year. Now there’s something of a surprise, eh?

Any such revaluations salutary effects on US exporters could be rather muted by the presence of import barriers which of course the move would not obviate. Can we consider this as a token of appreciation for Mr. Geithner delaying a report that calls China a currency “manipulator” which was due for release last week?

Gee, we don’t know, but the man just met with Vice Premier Wangâ¦will say some. Our own opinion is that the prospect of China possibly posting its first trade deficit in some six years in the wake of its gigantic commodities and consumer goods shopping spree, defused the US finger-pointing about the undervalued yuan sufficiently to make the publication of the report moot for now.

Where Is The World Financial Crisis Taking Us?

The world’s progressives, the Marxist/Socialists who are promoting world government, are setting the stage for a Utopian one world government by laying out the ground work for one Central Bank of last resort, namely the IMF.  The only way that this can be accomplished is by destroying the United States as the world’s only super power.

There is no way to raise the world to the U.S.’s living standards, so their proposal is to bring us down to the standards of the rest of the world.  This explains Comrade Obama’s  attacks on every aspect of life in the U.S.:  namely health care is broken, corporations are greedy, energy is too cheap and our borders must be open to all.  “Change” is coming and unless we wake up and stop it.  There will be little “hope” once it is implemented fully.

The world’s financial crisis is just getting started.  Make no mistake about it.  “Quantitative Easing”, piled on top of the “derivatives time bomb” is about to create the perfect storm for financial and  social chaos which will close the door on the Representative Republic that our fore fathers fought and died for.

You can ignore reality at your own peril.  I don’t think it is wise to do that with your investments.  It is long past time to get your head out of the political sand and see where these government policies are taking your investments.  If Comrade Obama can take over health care and private industry, what is to stop him from taking your IRA and your other investments if he feels that he can get away with it under the guise of the national good?

“Obama Care” Is Impacting Us Already!

“Obama Care” was one of many chinks in the wall and “Cap and Trade” may be the last.  “Obama Care” is designed to become single payer Socialist medicine which will destroy the dollar, since there is no way to pay for it without sending the printing presses into hyper-drive.  Why would any company pay $8,000 to $9,000 per year for an employee’s health care when the fine for not providing it is $2,000.  Everything in the bill is designed to eliminate private insurance so that the government will have to take it over.  I’ll get into Cap & Trade after this Boston Globe Article on the beginnings of Jimmy carter style price controls on private businesses.

Health care hikes rejected

State tells insurers no on 235 plans for small groups

By Robert Weisman / The Boston Globe  / April 2, 2010

Making good on Governor Deval Patrick’s promise to reject health insurance rate increases deemed excessive, the state Division of Insurance yesterday denied 235 of 274 increases proposed by insurers for plans covering individuals and small businesses.

The rulings, following a review process set in motion by emergency regulations Patrick filed in February, mark the first time the state has used its authority to turn down health premium increases. The action immediately sent ripples through the state health care industry.

Insurers said it would usher in an era of price controls, and vowed to appeal to the state or through the courts, a process that could drag on for months.

We share the concern about rising health costs, but we don’t think government price controls will solve the problem, said Jay McQuaide, vice president at Blue Cross and Blue Shield of Massachusetts, the states largest health insurer.

But small businesses applauded the rejection of higher premiums, saying they can’t continue to endure rapidly escalating insurance bills, especially after the long economic downturn.

Costs will double in four years if it keeps going on the same trend, said Dennis Franson, whose two-person investment firm in Woburn was facing an 18 percent rate increase. That’s unsustainable.

Insurance Commissioner Joseph G. Murphy found that most of the base rates proposed by state health plans were unreasonable relative to the benefits provided, according to a statement issued by the agency.

The rates were to have taken effect yesterday for thousands of businesses and individuals in the so-called small group market. That group, created by the state’s 2006 universal health care law, combines businesses employing up to 50 people with sole proprietors and self-employed people who previously bought insurance on their own or were uninsured.

Insurers proposed base rate increases averaging 8 percent to 32 percent for hundreds of separate products, offering different mixes of benefit designs, copays, and deductibles. On top of overall base rates, insurers often add extra costs for each business, adjusting for such things as geography, industry, and the size and age of a workforce. That can drive rates up significantly.

For now, premium rates established last year remain in effect. Because insurers send out bills four to six weeks in advance of the date policies take effect, companies or individuals that already made the new, higher payments will receive a refund or a credit from insurers.

During a meeting with 10 small-business owners at Chelsea Clock Co. yesterday, Patrick said escalating health care costs have crippled many companies.

For me this is all about jobs and creating conditions in which small businesses will start hiring, he said. Patrick has also filed legislation that would allow regulators to review contracts between insurers and health care providers, and yesterday he called on hospitals and doctors to help control costs.

Price controls never do anything but reduce supply and increase prices in the long run.  Add government to the mix and you have the formula for massive shortages and huge price increases. All of these little pieces are coming together to create the perfect storm in which gold and silver will shine.

Cap And Trade

Cap and Trade, or to put it more succinctly, Cap and Tax is the next major push by the Progressives in Washington.  This bill is insidious and it is going to obliterate the American lifestyle with its hidden taxes.  Energy and everything related to it will rise in price.  That means electricity, gas, water and everything that you buy will go up because of the taxes on energy that this bill imposes. If you are wondering why water cost will go up, just consider the energy that is need to drill it and to pump it among other things.

What may not be common knowledge is that the Progressives are seeking the largest increase in government control by requiring that houses cannot be resold unless they meet new, strict government requirements for updating appliances to new energy standards.  That’s right Comrade Obama is going to send inspectors into your home to see if it meets his approval before you can sell it! There goes the neighborhood.

The Dollar’s Days are Numbered!

The amount of debt that has been amounted in just 14 months of this administration is mind boggling!  I find it hard to believe that the purpose of destroying the value of the dollar is to save the economy and the country.  There is clearly another agenda being implemented here. At best we will be facing Jimmy Carter style inflation, at worst hyper-inflation!

“The way to crush the bourgeois is to grind them between the millstones of taxation and inflation.”
V.I. Lenin

It seems pretty obvious that we have not learned from history and that we are about to repeat it.

Gold And Especially Silver Offer Protection!

The times are rapidly changing and the prices of everything that we buy will be accelerating to the upside.  Buy gold and silver bullion coins on any dips and you will be rewarded in the long run.  I do not recommend trading bullion coins at this time.  Buy and hold them on any dips.

Any trading that you do should be in gold and silver stocks and mutual funds.   Always keep a core position so that you don’t miss any big moves and when you take profits, it would be wise to allocate a percentage to buying more gold and silver bullion coins.

I suggest leaning towards silver at this time because as gold takes off silver will follow with greater percentage gains because it has lagged behind gold in this bull run.  Silver has another advantage in that it’s price is much lower than gold and it is therefore much easier for the average person to buy on a more regular basis.

Now might be a good time to take off the blinders because gold’s warning signs are flashing! “Change” is coming and it is going to be here sooner than you think.

Till next time, good luck and good trading!

More Gold Market Analysis:

• Gold And Silver Are The Answer!
• Gold’s Next Move
• It is Time for Gold Investing!
• Gold Predictions
• For Gold, The Stories Are Beginning To Add Up