Archive for category Breaking Commentary

CNBC Emergency! To much truth, in such a short period of time!

Silver has gone way passed our target of USD $44.80 for 2011 and this morning is pushing the USD $48 level!

From the January 2011 TFP newsletter:

These high level trends are just a few reasons why gold and silver are so important to an investment portfolio over the next decade. There are NO major changes to the underlying fundamentals of this asset class and therefore we see the price of gold at USD $1880 and silver at USD $44.80 by the close of 2011. We also feel there is significant catapult potential around the areas discussed above that could push these prices even higher.

Current prices reflect a greater than 50% return since the beginning of 2011 and astonishingly close to 100% if you managed to catch it near the lows of the year. While we would normally expect a significant 10% – 20% price correction at any time, this situation is different. It is different simply because silver’s all time high in the 1980s was USD ~$50 and some change – if it manages to surpass USD $51 the market will suddenly realize there is no ceiling or historical price cap halting future upward moves. As a result, this could take silver to USD $60 or $70 before a correction occurs.

This is starting to smell like the tech bubble! The sad thing is that most people will mistake it for just that. This is because most people don’t understand monetary history and the fact that this isn’t a metals or commodities bubble, it is a currency crash…

“First they ignore you, then they laugh at you, then they fight you, then you win.” – Ghandi

Nothing to see here folks, move along.