By Jen Bawden
August 4, 2008
Right now charts say the Euro is to fall lower, the dollar is to go higher and gold and silver to go lower.
All my research (and I spend every moment I can studying the market) says long term dollar down, Euro lower, gold to 1500, silver much higher and oil higher (after it bottoms at $100-$110.)
When the market crash comes I will know exactly what to buy and at what prices I can steel my pet stocks. I have decided on energy dividend stocks with good balance sheets, management and steady cash flow for years to come as well as gold and silver.
But, if the charts are right, gold could fall to between 750 and 850. The only way that could happen is:
1. If the dollar rebounds
2. Interest rates go up in the US
3. World peace is announced
4. Everyone sells gold when the market crashes.
If the latter is the case then put a big chunk of your money in gold at the end of the market crash and you will do extremely well! Short the market on dead cat bounces.
As I have been telling you for over a year and a half, things are about to get a lot worse so get safe! Many more banks and brokerage firms will go bust before Christmas.
Time to open an account at your nearest safe bank like Royal Bank of Canada. They have branches everywhere and it will be a lot safer then most US banks. Your money and accounts will be temporarily frozen if your bank goes under.
As I said, if the dollar rises short term we could see a fall in the metals. When the market collapses I will sell my shorts and jump into gold and silver. I think people will be forced to sell them as they scramble to cover margins etc.