Gold could reach $1265 on this manipulation alone (61.8 % retracement) and many stocks may come back to 2009 levels. Yet nothing is certain. The best action plan remains to do nothing, or buy more at these low prices, or maybe register fiscal losses and re-establish positions immediately. Anything else may prove suicidal.

The current events are really « historical events » and will be recorded as such. A degree a of manipulation and public robbery of this importance is without any precedent. After all that was said and analyzed regarding the
fundamental situation of gold, to believe that the current situation can be permanent, that the banksters can win and that the gold stock market is over is illogical as Spock would say. Of course there is nothing funny in
watching one’s portfolio melt like butter in the sun, and it takes courage and knowledge to stand still. But what else can be done for now except buy more bullion? I strongly believe that no one is bigger than the market and
that banksters will fail. History is on my side on this one. If you can prove otherwise, I’m ready to listen.

Also, we cannot discard that by playing these games of short selling hundreds of tons of bullion and bringing to the party hedge funds, banksters and henchmen àla (cannot name) to despoil the public of their funds, the government has contributed to an enormous increase of the gold market volatility. I wouldn’t be surprised that it blows in their face one of these days.

Do you really believe that China, Russia and the others will be very happy to see their banking reserves depreciated by 10 % plus in a couple of days if it is not to their benefit, and that they will let the US government play its games? That would surprise me. I think they will sit on the bid and demand delivery. That won’t be so funny. What is so terrible in all this is that the government risks advancing the day of reckoning while trying to postpone it.

All things being normal, which they are not, there is still more downside in some stocks and I believe we are going to witness an increased effort in inflating the system. Keep buying gold and keep in mind that many gold stocks are incredibly undervalued. They are “on sale” so take advantage of the sale. Very few investors take advantage when the stocks are literally being “thrown away” when they offer opportunities for exceptional capital gains.

Raymond Langevin