We currently have the world's financial and currency markets in turmoil. The debt issues of the world, the latest being Hungary, driving down the markets on Friday.

As we write this piece the gold market has exploded to the upside which is not surprising to us with our view of where we see gold in the coming months. See our forecast below.

Yesterday at lunch here in Ajijic, Mexico I was able to overhear a conversation at the adjoining table. A group of 8 Mexicans were speaking in English about the issues confronting the world including the problems in Hungry, Greece and yes, the United States. True, these were professionals and savvy individuals but I was surprised to hear their discussions and concerns.

Their conclusion was and is the same as ours - BUY GOLD.

We continue to believe the gold will breakout to new highs very soon. The question is will the shares of the juniors follow or will be they be held captive to the direction of the financial markets which many believe are breaking down? We honestly do not know the answer to this question but we believe our day will come when the juniors will explode providing investors with incredible gains. We suggest that investors be strategically positioned now for this move while also holding some cash to buy at lower levels if the opportunity presents itself.

One chart which we have been watching is the HUI (Gold Bugs Index) compared to the S&P 500.

Clearly the chart on a daily as well as weekly basis reflects the HUI outperforming the S&P 500 and we see the potential of a breakout to the upside coming soon after a long period of consolidation. This breakout could be the catalyst for the big move we see coming soon. These charts are presented as of 12:04 pm EST as the markets are moving strongly to the upside.

In a previous article, Gold and The Parabolic Peak, we laid out (with charts) an argument for gold to peak between $2,450 to $3,500 based on previous parabolic moves in other markets. In addition, if we apply a Fibonacci projection from the January 1980 high of say, $820 we see 3.618 and 4.618 pointing to $2,967 to $3,787, respectively, falling within our target prices.

When we start to see gold go parabolic, rising day after day and everyone in the world getting excited and joining the party, then we will know gold is in a bubble. We believe that gold's big move up with be a moon shot. Our challenge then will be to exit before the masses and we see the strong possibility of this event happening within the next 18 months.

We believe investors are being given the rare possibility of a once-in-a-lifetime-opportunity, yes, a parabolic move in gold. The question is what will you do with it and do you need some assistance?

For those readers unfamiliar with our services:

• PreciousMetalsWarrants.com provides an online database for all warrants trading on the natural resource companies in the United States and Canada.
• InsidersInsights.com tracks the buying and selling of corporate insiders with a focus on the junior mining and natural resource sectors. Buy and Sell Alerts are issued as deemed relevant based upon our analysis.

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