Gold on the verge of breaking out big time!

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What about you? Sold your gold lately? Sold your gold due to an inevitable correction coming due? Sold your gold because of a tremendous short position build up with the bullion banks? Sold your gold because the bullion banks are so smart and always right? Sold your gold because of an imminent deflationary collapse which would bring down gold prices to absurd lows of $300 or less?

Well, the list of bearish arguments goes on and on but the reality is that nothing fundamentally has ever changed. In other words, those very same fundamentals which took gold up from $250 in 2001 to almost $1000 today are still in place.

With the end of the US dollar as world’s sole reserve currency in sight gold is poised for a monster rally towards $5000 or more. Yes, ultra bearish reports for gold are surfacing almost on daily basis now and yes, 12 reasons to short gold seems to be the tune of the day these days and yes, conspiracy theories to suppress the gold price are being ridiculed by western media as never before so yes, for newcomers to the gold market it’s difficult what and who to believe. Should they believe GATA which maintains the view that gold has been suppressed for more than a decade in order to maintain the illusion of a strong dollar? Or should they believe the mainstream gold organizations like GFMS who refer to the GATA crowd as a bunch nuts or even worse terrorists?

The simple truth is that GATA has done such tremendous research and has come up with so much evidence that even some major banks like Credit Agricole and CITI Group have published bullish reports on gold projecting $2000+ gold based on GATA’s findings. As John Embry of Sprott Asset Management once said, everyone with a IQ higher than a grapefruit should admit GATA has a point. Obviously GFMS Chairman Philip Klapwijk fails to meet Embry’s IQ criteria since he refuses to debate GATA on grounds you shouldn’t deal with terrorists.

To the newcomers in the gold market I would say please read the fictitious conversation between a staunch gold bull and GATA supporter (GB) and a mainstream investor (MI) who isn’t so sure what to believe these days. The conversation features discussions on traditional bearish arguments for gold, gold’s monetary role, the gold suppression scheme, GATA’s birth, the blatant lies from US government regarding its gold policies, Brown/Blair’s blatant lies after announcing the sale of half of Brittain’s gold in 1999, future for the US dollar, new world reserve currency, Chinese gold hoarding, etc.

I hope you agree with John Embry after reading this piece that GATA has a point indeed. It’s important to know what GATA knows since once you understand what western central banks have done to gold last decade you’ll understand why gold is heading to $5000 or more. Read More...