Gold Market Alert

Swamping the world with liquidity will destroy confidence in the monetary system...

GOLD BULLION has now entered the next and major leg of the long-term bull market after correcting down from $1,035 an ounce in March, writes Julian Phillips of the GoldForecaster.com.

We believe it is now re-targeting $1,000 initially, and this will be quickly achieved with pullbacks and periods of consolidation. We believe, too, that Gold Mining shares will benefit to a greater extent than gold itself in the coming moves higher. In particular, here at GoldForecaster.com, we feel that soundly based gold "junior" mining companies will benefit strongly.

The move has been triggered by the clear signal from the Fed that the deflationary spiral gripping the global economy is far more serious than even it realized until now. The initial impact has already been seen in the precipitous fall of the US Dollar to worse than $1.44 per Euro. As repeated attempts to re-invigorate the flow of liquidity have failed, the US Federal Reserve had to do more, much more...

• The Fed's interest rate cuts and 'Quantitative Easing" will soon be followed by central banks across the world;
• The swamping of the global economy with liquidity will stem deflation, but will also badly damage confidence in the world's monetary system and give rise to explosive inflation;
• The time it takes to reflate the global economy will be far shorter than most commentators expect;
• The strains that the world will now feel, particularly in the different world economies, will become in many instances, unbearable, so we expect to see restrictive local action in those economies to manage the huge capital flows that will be experienced.

All of these prospects are very positive for Gold Investment, if only because they're so bad for other asset classes.

We last issued a similar Alert early in September in 2007, just ahead of the leap from $650 to $1,000 and above. Now this alert is to prompt GoldForecaster.com subscribers and readers to act now before the market really takes off. We are dedicated to following these developments so investors can maximize their understanding and profits from the gold and silver markets. As a result we expect to see the gold market shine far brighter than we have seen to date.