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December 06, 2004

Apres Vous
by John Mackenzie

Gold is preparing to begin a serious reversal over the next 72 hours. The rise in price will be astonishing and will have left many a Gold Bull sidelined only to chase an ever appreciating parabolic rise in the Price of Gold & the Mining Equities, those that did not hold fast will be seeking medication.

Be forewarned.

Any weakness over the next few days should be used as an opportunity to purchase positions and be fully invested in Gold/Gold Shares.

We are preparing to move much higher and rather quickly, United States Dollar Imperialism is ending and quickly. I fully expect GOLD to complete it's detachment from the Federal Reserve Note over the next two months.

Gold will not begin its Second Phase until the Price of Gold has crossed the 50% retracement of the entire bear market. Do not be fooled into thinking this is so, it is likely two years away from breaching this milestone for good. It very well may begin to test this level in short order, but fail and begin a decline back to the breakout area of $433. It would be advisable to recognize profits on this next assault at the 50% retracement level and quickly. There will be a very large second order correction in my opinion; with the breakout level being back tested for 18 to 20 months.

Were FOREX to be halted, whither the price of Gold... price signals could be removed from "markets" around the globe.

Our Central Bankers have yet to meet a Bubble they did not adore as it simply serves to postpone the Day of Reckoning.

Attempts at HYPERINFLATION will cave in over the coming year and throughout 2005 as our Nation's Stock comes into question far beyond relative valuations to mindless FOREX games and hapless Central Pranking. June to December of 2005 will remove any and all veneer left upon the carcass that is the Credit Bubble Economy.

The Ten Year Note is beginning to resemble a Zombie that's shed a good deal of dead headedness and is quite likely in the formative stages of a very large reversal, now would be an excellent time to lock in a fixed rate mortgage vehicle under 6%.

Crude Oil is a very good long trade here as refiners have made the switch to heating oil and have stockpiled enough unleaded to manage gasoline's price prior to the Inauguration. The real issue lies within the Kingdom of Saud; Ghawar is being rapidly depleted of its Economic Oil reserves. The recent cuts in production were no accident, nor an attempt to stage manage the price of crude as the Media has suggested, but rather the world's largest Oil Field running out of Cheap and available Economic Oil at a rate far more rapid than assumed by most experts. What this means to the Global Economy should be obvious, in particular to the United States, the world's largest abuser of Energy.

Our entire Economy throughout the 20^th Century was based upon cheap and available Crude Oil. This is going to change and dramatically so.

2005 is going to be hell on earth for Americans, 2006 far worse.

It is best to consider what this means and if you have not begun to prepare for the coming Financial Disaster, it would be advisable to begin so immediately.

Do not be surprised by the lack of convention in most markets as we are deeply within uncharted waters and likely to experience immense volatility throughout the coming year.

Do sell the Publics entry into the Gold market or face untold losses.

Owning the Physical Metals is again, the BEST investment vehicle for preserving hard earned savings, regardless of PRICE... its VALUE is timeless and will, once again, serve as the ultimate hedge against uncertainty for the coming decades.

"I'll take Gold for $500 Alex," as Alex would say... Got Gold?

John Mackenzie

John Mackenzie manages private capital - Email: m2jrmfl@bellsouth.net

Copyright © 2004-2005 John Mackenzie

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