2012年8月12日星期日

Armstrong Economics------Gold Update



This week’s close of 1622.6 is the highest weekly closing since May. We have to be cautious next week for we could still make a higher intraday high, and then turn down for 3 weeks before turning back up. The resistance to watch is 1671. We have to see a weekly closing above that level before gold will see any sustainable rally. This crawling sideways pattern is indicative of the calm before the storm. The volatility should start to rise now for the next three weeks before we see another turning point. The other number to watch is 1569. A year-end closing below that level will signal a low next year completing a two-year correction process with a 5 year rally thereafter intraday into 2018 with 2017 being the highest annual closing. If this pattern unfolds and gold cannot get above 1671, the we may be looking at the whole Sovereign Debt Crisis coming in starting next year. Taxes will rise in the USA and governments are attacking the bullion trade as we see in France. They appear to be forcing capital to hoard expanding the underground economy. Americans with safety deposit boxes in Europe have been told to get out. Governments are doing everything to grab money short-term. They will cause a sharp economic contraction by forcing capital to hoard.This is similar to the same patterns that set the Decline and Fall of Rome in motion by  Maximinus I (235-238 AD) who sought to attack the rich seizing all wealth.

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