Jim,

Salient points:

1. All the leverage is still there (i.e. nothing has been solved).
2. Banks are hoarding taxpayers money and not lending.
3. Equities are priced for a massive recovery, which current lending implies is simply not going to happen.

Here’s a link to the video…

Regards,
CIGA Pedro

Hi Jim,

What a beautiful and timely article. No matter how tough we think we are (or are not) it’s nice to have your confidence behind us.

I can never hear too much of your expertise. I have one additional question that you might not have an answer but I thought I would ask. It seems to me that in the near future the general equity market will have some sort of a correction. How will this affect the gold and silver equities? Since I have come this far I am in it for the long haul but just wanted to know what to expect.

Have a great night and as always… THANKS.

Warmest Regards,
CIGA Ron

Dear Ron,

Gold will follow the dollar, and gold shares will after 2 to 5 trading days follow gold itself. It is the dollar that is the determinate.

After 2 to 5 trading days of flight to so called safety in the dollar, a weaker economy will put downward pressure on the dollar and therefore upward pressure on gold.

Silver in my opinion will be pulled two ways at first, up by gold and down by the economy. This will result in price indifference until gold’s upward momentum becomes the greater influence.

There are silver specialists that might have some additional answers for you.

Regards,
Jim