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.

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