In a recent economic analysis piece featured by our friends at Gold-Eagle.com, (http://www.gold-eagle.com/editorials_05/tustain120505.html), Paul Tustain outlines just how bad the national debt situations is, he compares our situation to Argentina a few years ago, and he predicts that Uncle Sam will inflate his way out of the jam. My extrapolation of Tustain’s remarks–and from what I’ve read from many other analysts: One likely end result will be a dollar crisis and gold at perhaps $2,000+ per ounce. Meanwhile, the expert “chartists” like Clive Maund (see: http://www.gold-eagle.com/editorials_05/maund120505.html) tell us that in the recent run-up past $510 per ounce, gold has pushed so far above the 90 day moving average (90 DMA) so rapidly that it is substantially overbought. (See our free precious metals tickers at the SurvivalBlog Investing page.) The chartists predict a temporary retracement–perhaps bringing gold to as low as $480 per ounce before the bull resumes his charge. That dip might be a buying opportunity for those of you that presently feel like you’ve missed the boat. Maund says that any retracement in silver will be much smaller and shorter-lived. The silver bull, he says, will barely pause to catch its breath. I’ve said it before and I’ll say it again: I predict substantially higher prices for gold and silver before the end of GWB‘s second term.
Paul Tustain: The Crushing Debt Burden = Inflation Ahead = Higher Prices for Gold and Silver
