Precious Metals Update

You may have noticed that yesterday gold briefly touched $565 per ounce and silver hit $9.44 per ounce and stayed there. Methinks this bull market is just getting started! Aside for some doldrums this summer (since summers are typically quiet for the metals markets), you can expect a choppy but generally upward (stair-stepping) path for the precious metal prices through the rest of the year. The 90 and 120 day moving averages (DMAs) point to the bull market trend to continue WELL in excess of the rate of inflation. There is even the chance of on “upright spike” in the event of a dollar crisis. I’ve said it before and I’ll say it again: On a macro scale, the second half of this “Aughts” decade will probably resemble the second half of the 1970s. I just hope that the Federal Reserve’s new chief (“Helicopter Ben” Bernanke) can crank up his bubble machine fast enough to avert simultaneous stock market and real estate market collapses. This could get very interesting, folks. I expect that the U.S. real estate bubble will burst, sometime around May of ’06. There are already signs that the bubble is starting to lose some of its hot air. For example, see: http://money.cnn.com/2006/01/19/real_estate/home_money_0602/