My near-term target for gold has been $1,600 for some time. Now, the mainstream press is hopping on board with widely read stories:
Ben Bernanke has assured us that the Fed will print more money to deal with any potential deflation. That provides plenty of steam for gold and silver to continue their rise. Gold and silver stocks continue to benefit from the market prices and are still lagging in their stock prices. Producers are building cash balances that will allow them to acquire smaller producers.
I continue to expect the second leg of the double dip “W” recession and suspect it will be deeper than the first, based on real statistics. Investors looking in the rearview mirror may be in for a big surprise in the bond market has a large correction. If this occurs, it may be the tipping point of a new era.