muses of the moment

December 29, 2009

Alf Fields’ Gold Predictions

Filed under: Gold and Silver Investing, Hyperinflation, Precious metals — Tags: — totallygroovygirlfriday @ 1:04 am

As you may already know, Alf Fields has decided to stop writing his gold predictions. This is his last one from November 2008. Groovygirl is using this as a capital preservation tool, not a trading tool, until I see something different. We are currently in major wave 3 up.

Click here  for the link.

A snippet:

Assuming that the $699 low on 23 October 2008 turns out to be the actual low point of the correction, and that remains to be proven, then we can conclude that we have seen the low point for Major TWO. That will allow us to update my original “back of the envelope” template to much higher levels, as follows:

Major ONE up from $256 to $1,015 (actually 4 times the $255 low);
Major TWO down from $1015 to $699, say $700 (a decline of 31%);
Major THREE up from $700 to $3,500 (a Fibonacci 5 times the $500 low);
Major FOUR down from $3,500 to $2,500 (a 29% decline);
Major FIVE up from $2,500 to $10,000 (also a 4 fold increase, same as ONE)

Once again, you can pick your number for the gain in FIVE and multiply it by $2,500. The numbers become astronomical and can really only be possible in a runaway inflationary environment, something which many thinking people are suggesting has become a possibility as a result of the actions taken during the current crisis.

Groovygirl must warn you, do not day-trade gold. Buy on dips and hold for the coming currency collapse. If you are going to trade during a particular wave period, use only 1/4 of your invested allotment, no margin, and be willing to lose it. This is not the time to trade, it is the time to preserve the purchasing power of your savings.

Click here  for Alf Fields’ latest commentary on hyperinflation.

$10,000 may seem like an incredible price. Groovygirl is taking it one step at a time.

First, Jim Sinclair is calling for a high of $1650, and claiming he could be wrong (or it will go much higher). I agree, $1650 is in the bag at this point. So, if you buy at $1100 now, at $1650, a gain is guaranteed.

Then Martin Armstrong is calling for $5000. So far, Martin has been on target, so I would say $5,000 is a real possibility. That’s a huge gain when buying at $1100.

But $10,000 means that the USDollar will be worthless. This is a real possibility. The FED (and every other central bank) is still printing money with no end in sight. Some sort of currency collapse is coming.

If you can not afford gold, buy silver. It may actually do better anyway.

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