Gold was down $104 at the time of this writing and this correction was not unexpected. As the market jitters increase, I expect large dollar moves in both directions. I also expect those in power over trading account regulations to increase margin requirements on gold and silver traders in an attempt to lower market moves upward. The Gold Barometer may work against Ben Bernanke once he discloses his plans at Friday’s Jackson Hole speech. I suspect details will surface after the markets close on Friday. Another round of quantitative easing is sure to come forth during this election season. Politicians will not hesitate to start the money printing presses to get reelected.
My next intermediate target for gold is at $2,400 now that $1,600 has been passed. Today was a good day to add to positions on the mining stock side for those who understand the risk of investing. I have a great concern for those who are unprepared for the storms ahead. Many of us will be called to minister peace during the expected economic turbulence. A transfer of wealth differs from a transition of wealth or power. Those who lose the wealth will not be happy campers.