With events happening in the world that I thought I would never see in my lifetime, and knowing that the time was ripe for Gold, Silver, and the Precious Metals stocks to start their ramp-up into the final grand Vth Wave run, I have spent many late nights working up Precious Metals related charts using my usual angled line chart formations along with the historic Fractal Relationships on the charts and come up with price target potentials for the PM Sector that are just ?crazy high? on the upside. By Goldrunner (Note: Always evaluate ?risk? before considering potential reward.? Knowing your downside helps to keep you well grounded in life and that is what this writing is about. After this writ, I will start to develop the HUGE POSITIVE POTENTIALS for the Precious Metals and for the Precious Metals Stocks.)THE GOLD-EAGLE FORUM AND GOLD Back in 2005, when Dr. Vronsky convinced me to write publicly while I was posting on the ?old Gold-Eagle Forum?, I had targets for Gold to eventually rise up into the $10,000 range by the end of this cycle. A bit later in my chart work, I raised my expectations for Gold to rise higher in the cycle - up to $12,500 - yet the Dollar printing has been high enough that the Gold Chart suggested much higher pricing… During this time period, I realized that the angled line method that I use to anticipate future pricing had never really been tested so I immediately decided to use the Gold rise up into the 1980 high for Gold as a method to check my ?future pricing method.? Low and behold, the 1980 final price left my ?angled line pricing technique ?short by 50%? of the potential price high for Gold that I expected into the eventual coming top. This difference provides a potential much higher price for Gold than the $12,500 eventual target. In fact, it even provides a potential final Gold price spike high, higher than $20,000. I don't know what method Mr. Lassonde from Franco Nevada used in his recent potential projection for $20,000 Gold, but I was very happy to see him post it since I felt like less of an idiot…Then there was an article by Egon Von Greyerz saying that Dollar devaluation since 1981 suggests $20,000 Gold… THE ?TWO WORDS? I THOUGHT I WOULD NEVER SAY, OR WRITE Earlier today I received an email from a long-time friend from back on the good old Gold-Eagle Forum days - Deadeye - who was responding to an earlier swap of e-mails with me about the ?virus.? His final words in the e-mail were ?at the expense of millions of working people being made poorer and bankrupt!? and, suddenly, my throat tightened, tears came to my eyes, and brought two words to my mind - INFLATIONARY DEPRESSION. I finally ?got it?, and it slammed home like a sledge hammer to the head. I had, just an hour before, finished going through a slew of charts. I knew that the rise in the DJIA had recently risen much higher than the fractal work off of the chart of the 70's had suggested and was well aware that the recent top for the DJIA took more time for that rise to complete. What really stuck from the charts, however, was the fact that everything about the recent top for the DJIA seemed to fit with a potential MAJOR TOP similar to the 1929 DJIA top on that chart walk. In fact, the sharp fall of the DJIA, didn't just fall - the fall took the DJIA all the way through the myriad of moving averages I use - ?the moving average ribbon" and THAT is a hell of a fall. The DJIA had been driven up much higher than into the 1979 period, had been held up longer, and then, instead of ?trading down" - it had technically ?CRASHED?, very much like 1929. Oil had traded much like the late 70's fractal work, until it had traded down and then crashed. With nobody driving around very much - with little truck traffic - with no storage space left to store more oil - THIS is a major, major deflationary event! With so many people living paycheck to paycheck and no known way for economies to logically recover quickly the government is in the process of massive printing to shore everybody and everything up BUT, the last thing on my mind was an INFLATIONARY DEPRESSION. Why had I not at least thought of that possibility? To my credit, I had suggested to the group that with all of the printing going on, I would not be surprised if sometime after Gold rises to cover all of the Dollar printing that we might see a new world RESERVE CURRENCY ANNOUNCED yet, everybody, everywhere, is probably printing paper currency out the ?wazzoo?. PRECIOUS METALS STOCKS? …I have not seen a big move for writers to hammer on the need to hold physical Gold and Silver. Obviously, the Precious Metals companies who mine Gold and Silver will fair, well, and the explorers who own ounces in the ground will do extremely well, too…?The Street? has this crazy rule that Gold and Silver Ounces in the ground will not be re-valued higher until the last high has been re-tested. I think we are ?there?, but a lag in time can still take place. We are all in this together - world wide. What do you think about an INFLATIONARY DEPRESSION? Have your say in the Comment section below. We'd like to hear from you. Related Articles From the munKNEE Vault: 1. What's Coming: A Hyperinflationary or Deflationary Depression? (+5K Views) While I believe that the U.S. is heading towards a Weimar style hyper-inflationary depression there are several developments that point to the possibility of another deflationary depression, similar to the 1930's. Let me explain. 2. Coming Inflationary Depression Means Future Commodities Super-boom (+3K Views) Mladjenovic explains his contention that we are in for a inflationary depression and, as such, investors should put their money in those things that will benefit from both inflation and strong demand and supply and stay away from where there is a deflationary impact, such as real estate. Words: 825 3. Coming Financial Crisis Will Be Inflationary ? Here's Why Market participants often expect the next crisis to look like the last one, but it never does. IMO, the current monetary system's ultimate financial crisis, meaning the crisis that leads to a new monetary system, will have to be inflationary. Here's why. 4. Get Prepared: The World Is Careening Towards An Inflationary Shock (+2K Views) The world is careening towards an inflationary shock. As was the case with the beginning of the Housing Crash, few are noticing what's happening and even fewer realize the true scale of what's about to take place. 5. von Greyerz: 4 World Crises ? Sovereign, Banking, Economic and Social ? Guarantee a Hyperinflationary Depression (+3K Views) We are in a number of crises: the sovereign crisis, a banking crisis, an economic crisis and a social crisis. The first three crises together are guaranteed to bring down the world economy because they are not just in one country, they are worldwide….A social crisis will develop leading to even more social unrest. All of these factors are why this will ultimately lead to a hyper-inflationary depression - the most serious depression the world has ever experienced - and why investors have to focus on protecting their wealth. 6. Williams STILL Believes a Hyperinflationary Great Depression is Coming! Here's Why (+3K Views) The U.S. economic and systemic-solvency crises of the last five years continue to deteriorate yet they remain just the precursors to the coming Great Collapse: a hyper-inflationary great depression. The unfolding circumstance will encompass a complete loss in the purchasing power of the U.S. dollar; a collapse in the normal stream of U.S. commercial and economic activity; a collapse in the U.S. financial system, as we know it; and a likely realignment of the U.S. political environment. 7. New Boom-bust Cycle Risks Hyperinflationary Depression and Much Higher Gold Price ? Here's Why It is my view that the world has entered a new boom-bust cycle driven by oil prices. Oscillating oil prices ? as opposed to credit cycles ? will repeatedly stimulate and crash the highly levered global economy. Governments have not recognized this new cycle, and as part of a fruitless effort to retain control over deteriorating real growth and rising unemployment central banks will print more and more money, risking a hyper-inflationary depression (stagflation at best). [As such,] the only respite for many investors is gold. [Let me explain.] Words: 925 8. A Hyperinflationary Great Depression Is Coming to America! Here's Why (+6K Views) The U.S. economic and systemic-solvency crises of the last four years only have been precursors to the coming Great Collapse: a hyper-inflationary great depression. Outside timing on the hyperinflation remains 2014, but there is strong risk of a currency catastrophe beginning to unfold in the months ahead…moving into a full blown hyperinflation [in a few] months to a year… depending on the developing global view of the dollar and reactions of the U.S. government and the Federal Reserve. [Let me go into more detail.] Words: 2726 9. Investors Should Prepare Now for Coming Inflationary Depression ? Got Gold? It is an old saying that the ?road to hell is paved with good intentions?. Well, in recent years, that road has been changed to a super-highway! America was put on that super-highway a few years ago and right now we are traveling at break-neck speed toward the financial abyss. Words: 1132 10. Why An Inflationary Depression is Likely in 3 Years and How You Can Protect Yourself Given that governments are reluctant to take their lumps now, what are the odds that they will do the right thing ? outright default and debt restructuring ? three years hence when the debt bubble is that much larger, the economy is in worse shape, and the pain of default and austerity is much higher than today's? The words "slim" and "none" come to mind. The world is firmly ensconced on the path to an inflationary depression. Words: 1119 The post Goldrunner: ?Coming INFLATIONARY DEPRESSION = $20-21K/ozt GOLD!" appeared first on munKNEE.com. |