August 24, 2009 – I expect considerably more volatility in the markets in the months ahead, particularly for gold and silver. Once gold climbs above $1,000, I expect a whole new ballgame will emerge. The gold cartel will be less effective in managing their staged retreat, so the gold price will rise more rapidly than it has these past nine years. And the gold price – but not the purchasing power of gold itself – will become more volatile as the US dollar approaches its inevitable collapse.
Imagine the dollar today as a spinning top that is losing momentum and wobbling. A top’s wobbles become ever greater as it approaches the point at which it eventually falls over, and so too with the dollar – which looks ready to fall over soon.
As I have so often repeated of late in order to drive home an important point, the dollar is on the path to the fiat currency graveyard. Sooner or later it will get there, but I actually think it is knocking on the graveyard’s gates right now.
The dollar must be put back on the right path. It is a path leading away from that fiat currency graveyard, and the way to re-direct the dollar is clear.
Hopefully government policymakers will go back to the basic monetary precepts of the Constitution. Hopefully they will once again define the dollar as an unchanging weight of gold and make dollar currency redeemable into gold upon demand. Don’t hold your breath, but regardless the outcome, I will try to respond in a timely way to rapid market changes as they occur. And I expect that there will be many.