How High Can Gold and Silver Go? How Should You Play It?

by Sean Brodrick on February 18, 2011

CLICK HERE TO JOIN THE DISCUSSION!

If you haven’t checked out the action here on our blog this week, you really should. We’re discussing the impact that rising commodity prices will have on all Americans … and how YOU can profit from this bull market.

As I write to you right now, readers are chiming in with their answers to the question:Which Commodity Will Lead the Way Higher?”

Silver is one of our readers’ favorite picks for the lead commodity. Carol F., for example, writes: “Silver is the next commodity to surge, it just broke the 30-year high today!”

Silver breaks out

Carol, you’re absolutely right about the new high — silver just busted through overhead resistance to the highest level since 1981! But there are also other commodities that some of our readers like as well …

Dan H. says: “The Middle East is a boiling cauldron, ready to explode. If it does — and I think it will — then oil will rise in a big way.”

D. Couch thinks it’s AGRICULTURAL commodities that will make the most money for investors. “I think corn will be much higher within 2 years,” he writes. “Demand for corn comes from all quarters — ethanol, food, cattle feed, chicken feed.”

My view: It’s no secret that I’ve been pounding the table about silver AND crude oil. I think those two could lead going forward, as the global economy kicks into higher gear. Plus, they also are among the commodities give us the widest range of choice, easy-to-buy producers, service company stocks and other investments.

Copper Has Lead the Way Longer Term,
But Silver and Oil Are Coming On Strong!

Of course, a lot depends on your time frame. Take a look at this chart showing the percentage gains in some leading industrial, agricultural, energy and precious metal commodities over the past two years …

In this time horizon, you can see that copper has led that way higher. Crude oil and silver are also outperformers. Gold and wheat are up, but have lagged the pack over the past two years.

Performance depends not only on length of time, but also on what commodities you choose. For example, I could have added cotton, palladium or coffee to the chart and you’d see a different picture.

But one thing’s for sure: Commodities overall are in a HUGE bull market.

So here’s today’s question for you:

How High Can Gold and Silver Go
… and How Should You Play It?

What are YOUR targets for gold and silver? How quickly do you think the precious metals will get there? And most important, what’s the best way to play the coming surge? Just click this link and leave a comment to join the discussion!

My best wishes to you all,

Sean

{ 93 comments… read them below or add one }

Carol Ferguson February 18, 2011 at 11:36 am

I let the charts tell me when to enter and when
to exit a position. This can’t be guesswork.

Silver looks stronger than gold, it has some
catch up to do.

Reply

Federalist45 February 18, 2011 at 11:45 am

Honestly, I can’t figure it out. I have been trying to stay patient, following Larry Edelson’s recommendations on gold, silver, other commodities, the dollar, and the broad U.S. stock markets. So, I am waiting for gold to dip to $1225-$1250, silver to dip to $23-$25, the dollar to fall through the floor, and the broader stock markets to pullback to 9000 or even 8700. These are all Larry’s numbers, not mine.

I now feel as though I totally lost out on the 25% rise in stocks last year, the recent $50 rise in gold and $4 or $5 rise in silver, and that my contra dollar (UDN) and contra Euro (EUO) and even contra bond (TBT) investments are all killing me.

How high can they go? Short term, intermediate term, or long term? In real value or inflated value?

For now, I am sticking with Larry–

–Gold–short term to $1225 but up to $1500/$1600 by end of 2012;
–Silver–short term to $23 but up to $40 by end of 2012;
–Dollar and Euro–short term sideways–long term death;
–Long term government bonds–short term mixed–long term coma.

I believe that Larry’s cycles analysis was correct, but it was offset by unforeseeable events that made people turn to gold for some sense of safety. The Tunisia, Egypt, Yemen, Jordan. . . explosion, the debt/deficit crises at all levels of government, the looming collapse of the EU, a rising China and rising Islamic terrorist threats. . . all played against what the cycles were telling Larry. In the end, they more or less balanced out. But for the unforeeable events, gold probably dips to $1225. But for the cycles, gold probably skyrockets to $1600 nearly overnight. What we ended up with was a fairly small move upward.

Reply

George February 18, 2011 at 11:53 am

I sent an e-mail to Larry a week or so ago citing that his cycle for gold in January was in conflict with his most recent cycle for this commodity and asked what caused him to change his opinion. I have not heard from him; perhaps someone else can provide me with an answer.

Reply

John February 18, 2011 at 1:19 pm

Federalist45, forget Larry for the time being. Go with Sean.

Reply

Larry Williams February 18, 2011 at 11:47 am

So, Sean is telling us to buy silver now, and Larry Edelson is telling us to expect a pullback to $22 oz. and to short silver with ZSL. Larry is also telling us to short gold via DGZ. Of course, both ZSL and DGZ have gone down since Larry originally said to buy them–as has S&P shorting SH.

Colleagues in the same shop apparently don’t agree in detail, leaving anyone who follows both of them basically to his own devices and financial fortunes or misfortunes. Any perspective on this???

Reply

CJ February 18, 2011 at 12:00 pm

I have the same thoughts – Both Larry and Sean are very good at what they do, but strangely they are on opposite sides at this very moment on this subject. Confused? I am, so I do what both are saying and it has helped keep my losses to a minimum. But I watch these markets closely by the hour and I look for any changes. Both Larry and Sean have been right long term and my portfolio thanks them both. Hang in there, time will tell!

Reply

paul February 18, 2011 at 12:12 pm

I am frustrated too. I have stuck to Larry’s recomendations and for months my Retirement is loosing value. When will Gold, Silver, The Dow and SP hit these lower levels. I am so deep into it now, I am afraid to get out. Should I stay or should I go ???????

Reply

Andrea February 18, 2011 at 3:20 pm

Silver already made it’s pullback and 26 or so was as far as it got. It might make another one, but I think the chance of it reaching 21 is over. Too late for that now. Just my oppinion. Others were also calling for 21 as the low. I also didn’t buy more (SLV and AGQ) as I was waiting for that level. In the scheme of things I think it is better to get in than to totally miss the boat. Scaling is seems to be a good idea. . .

Reply

pete April 9, 2011 at 8:53 am

dont you feel silly now $40.95 today

Reply

CJ February 18, 2011 at 11:49 am

Gold will hit $1500 and Silver at $50 by June of 2012. The best ways to play this would be the Futures Market. I know most are unfamiliar with the Futures Market but it is the safest and most profitable way to play this rally after a pullback in both metals by late spring early summer.

Reply

Andrea February 18, 2011 at 3:21 pm

It is the most profitable, not sure the safest. Can you explain your thougts on this?

Reply

CJ February 18, 2011 at 5:12 pm

Of course it’s not much different than buying shares in SLV or options or other types of investments (like we do) and the rewards are much greater. Like options you can lose up to your initial investment, however, if we can agree that over the next 24 months silver is going to $50, you can buy one contact (100 oz) today for around $3200 at today’s silver prices and take delivery (or cash) up to 2 years from now. If prices fall and I’m in at today’s prices, well I’d just take delivery and wait for silver to rise again. In my opinion it’s a no brainer. Study more about the futures market and you’ll see.

Safer? Well, I think so – it’s not any riskier than any of the other investment options we make, except if the trade goes against you – take delivery. if/when silver does pull back and you load up on Future Contracts, you can… not only take physical delivery, you don’t have to pay the high premiums above the spot price just brokerages fees.
Don’t get me wrong, this is addition to the physical metal I own when gold premiums were only $20 over spot. I have a hard time paying $80 over spot

Reply

Glenn Freeman February 18, 2011 at 11:50 am

I agree that silver, oil and commodities are headed for new highs. I wonder why you are recommending action now when Larry Edelson says to keep our powder dry as the pull back is not over? Don’t the right hand know what the left hand is doing?

Reply

Jerry February 18, 2011 at 11:54 am

The Weiss Group advisors often differ in their outlooks. You need to do your own research as well and go with the individual you believe represents the real world at any specific time.

Reply

Ken Berns February 18, 2011 at 11:57 am

There is no doubt in my mind that gold (along with other metals) will continue to climb the charts in the long term. I’ve been waiting for gold to pull back to the 1200 level so that I can load up but now it looks like we may not see it. Murphy’s Law says that as soon as I load up on gold it WILL pull back, so while I have a position in gold, I hesitate to add to it just yet.

Reply

Kevin March February 18, 2011 at 11:58 am

If the turmoil continues in the Middle East, and one or more, oil supplier states turn into religious Islamic States; and if the insane Obama administration causes the collapse of the dollar by virtue of its inept spending, Gold and Silver will become the “currency” of choice since there would be no confidence in any fiat money. The world be be perfect for the entry of the 12th Iman (Shia) and the AnteChrist forecasting the end of the word as set forth in both Judeo-Christian and Islamic prohacy.

Reply

ed February 18, 2011 at 11:59 am

I agree with Larry Williams…very disturbing to be following Larry Edelson’s advice (which I did) shorting silver with ZSL and gold via DGZ. Both are way down since Larry said to buy them.

Now someone else in the same office says they going to sky rocket.

Oh well, it’s only money.

Reply

Larry Williams February 18, 2011 at 12:01 pm

Ken is in the same position as I am. I have sold almost all my gold holdings in anticipation of the pullback, although I have to point out that Larry Edelson does not say the pullback is a certainty–the market is out to get us, and he acknowledges that if it closes at a new plateau then it might just launch much higher from there. Appreciate the comments of all here–helps me to keep perspective.

Reply

Rich V February 19, 2011 at 5:57 pm

In my opinion, this cycle stuff is a bunch of hog wash. Sure there are cycles in all markets; however, predicting when they will change is essentially a betting game. Too many unpredictable factors affect the market. Human emotions (fear and greed) are the biggest. You can add world affairs, weather, politics ……etc. Larry’s prediction of the Dow following to 9000 based upon rise in value of Yuan does not make any sense to me. Since most raw materials are valued in $, China can import goods at lower cost or with minimal cost increase. I doubt it would affect their export business either since the developed world can’t compete with their low production costs. Yes gold, silver, oil and stock market will go down, but who can really predict when? We would not have hedge funds if the future were really predictable. Tough to beat a well balanced portfolio or well chosen funds and ETFs.

Reply

Larry Williams February 18, 2011 at 12:07 pm

Re: Ed’s comment–

So, I purchased more ZSL in the past day to average down my cost, but honestly don’t know what might turn silver downward in the current environment (and, hence, ZSL upward). As always, my choice is either to ride the loss until (possibly) a townturn brings ZSL back to my cost, or to sell early for a loss. And, maybe the best scenario to keep in mind if I want to play ZSL is to wait for it to get to some ridiculously low price (say a nickel per share!? as silver follows Sean’s path) and load up a million shares and see if it rebounds.

Reply

Andrea February 18, 2011 at 3:24 pm

I also bought some short ETFs a little while back and just lost money on them. With such a strong bull market, I think it is safer to just buy more on the LONG side in the pullback and don’t short at all. I wish I had done that (my normal strategy) rather than listening to advice of (several) market guys.

Reply

CJ February 18, 2011 at 12:09 pm

Larry’s cycle showed Gold trading down in January (not as much as I thought), rising in Feb/Mar and falling in April through June and the time to Load up is by the end of June. That’s my plan. I hope it all works out!
But like Ed said…”it’s only (fiat) money”

Reply

Susan February 18, 2011 at 12:16 pm

Hi Sean,

So how high can gold/silver go? Intermediate-term, I think silver can “easily” reach $50 and gold $2000 an ounce, based on what I’ve been hearing. But Larry Edelson says that in the short-term, this is a time for “caution”. In fact, sometimes silver rises so rapidly that it gets me nervous. Nevertheless, I love these two metals (as a hedge against Bernanke’s policies at the Fed) for the longer term!

Reply

Pete Williams February 18, 2011 at 12:18 pm

I too am conflicted; I bought a bunch of bullion and put it in the safety box; that will stay there; glad I got it at $1225. However, I sold GLD and SLV when LE said the charts showed $22 or so for silver and $1225-1275 for gold. Believe me, if silver and gold tank, I will stock up again. But, one thing you can do is to buy miner stocks and not worry about the raw value of gold or silver. We have had many fine recommendations from the Weiss Wizards (WW from now on). The miners should perform regardless of the actual gold or silver price. That is my play right now so that I don’t miss this thing.

Reply

william dolan February 18, 2011 at 12:22 pm

sean;who says the general public has to use precious metals to adorn themselves,some where out there a fad will switch the tables and there are people waiting for permission to buy now.the pm bubble will break soon,william

Reply

Fred Wright February 18, 2011 at 12:23 pm

I believe the protests against monarghy in the middle east will intensify as will disruptions due to factional differences within mideast religions. Shipment of oil out of these mideastern regions will be seriously disrupted, leading to substantial increases in the prices of our oil sands stock. I intend to take advantage of this!

Fred

Reply

Roger H. February 18, 2011 at 12:23 pm

HOW HIGH CAN THE GOLD PRICE GO? WRONG QUESTION! HOW LOW CAN THE US DOLLAR GO? THAT IS THE CORRECT QUESTION! GOLD IS WHAT IT IS! IT HAS BEEN THE SAME FOR OVER 5000 YEARS! I CAN ONLY ASSUME THAT TOO MANY PEOPLE DON’T GET IT. PAPER (FIAT) CURRENCIES HAVE ALWAYS DIED! THE US DOLLAR WILL DO THE SAME! WE ARE BECOMING THE “UNITED STATES OF ZIMBABWE.” THE “FED” HAS RUINED OUR CURRENCY AND SHOULD BE ABOLISHED IMMEDIATELY! GOLD AND SILVER WILL ALWAYS BE MONEY AND, IF YOU HAVE ANY BRAINS, YOU WILL GET SOME! JUST LIKE “CONTINENTALS” AND “REICHMARKS” AND ANY OTHER FIAT CURRENCY, THE “ALMIGHTY DOLLAR” WILL ALSO DIE! IN A FEW YEARS THEY WILL ONLY BE USEFUL FOR NOSE WIPING OR FIRE STARTING! “AURUM ET ARGENTUM COMPARENDA SUNT! OREMUS! IT.S ALL IN THE HISTORY BOOKS! SO GO LOOK IT UP AMERICA! AHORA!

Reply

Rita C February 18, 2011 at 4:49 pm

Roger,

I have never laughed so much, thanks for this post !!

I was waiting for the pullback in gold and silver as Larry Edelson indicated in his newsletter. The middle east crisis seems to have changed this outlook. I think silver, even if it corrects will go at least to $40. As far as gold, $1500 at least this year.

The interest rates are close to ZERO, so it’s metals !

Rita

Reply

Bill February 18, 2011 at 12:25 pm

Like Federalist45, I’m am testing my resolve in following Larry’s analysis of Au and Ag trends. The hedge positions are approaching sell stops, especially close on silver reflecting more volatility. While the miner position I’m holding that has exposure to silver is appreciating nicely, the 2x hedge is offsetting those gains by about 50%.

So… If my resolve holds and expect Ag to drop to $23 short term, I may need to adjust the hedge to factor in Ag short term jumping past 33, which might happen today (as I write this, it’s already 32.50.) At that point, increasing hedge amount might be a good play while adjusting the hedge price to reflect a new short term target for Ag.

If my resolve fades, then before Ag appreciates more, perhaps I should close the hedge position and take that loss.

I suspect Ag goes at most to $34-35 before it pulls back to $23-25. Minimally, the hedge price may need to reflect 36-37 and adding to it when it hits 33 may be good. Remove hedges around $25. Then Ag probably goes to $45 by year end.

Regarding gold: Au is much more stable that Ag at the moment. I don’t see it going go a new high again before a pull back to mid to low 1200′s. At that point, adding to the positions is my plan. New highs by the end of the year will probably be 1500 – 1600.

If congress does not cut spending by at least 0.5T as a downpayment on future cuts, if the President vetos spending cuts, if the Fed finishes QE2 and worse, starts QE3, then I would not be surprised by $2000 for Au and $60 for Ag by the end of the year.

Reply

David H February 18, 2011 at 12:26 pm

I have listened to many advisors over the past three years and by far Larry Edelson is my prefered advisor. I should have bought silver at $10 and Gold at $700 but I had to do my own research and due diligence. Larry’s long pics have been excellent! I am very thankful that I listened to Larry and invested. I have sat in front of my computer and sweated out the dips and pull backs… Should I buy or should I wait? When it is all said and done it really won’t matter if I bought a the bottom or at the best pull back it will only matter how many ounces I have or control.

Reply

Allen Secord February 18, 2011 at 12:28 pm

Awaiting a correction, I have decreased my holdings in Metals over the past two months. Larry Edelson warns to hold off buying metals at this time. What is your outlook for a near term correction?

Reply

Elizabeth Gallagher February 18, 2011 at 12:37 pm

It is frustrating to have conflicting advisors as Larry and Sean are, over the long run I have held on to my GLD, gold mining stocks and SLV while waiting for any pull back to add to those positions. There hasn’t been any major downturn yet but I do believe when the **** hits the fan, which it will do soon, there will be a chance to buy! I have read that any dips in gold the Chinese have been buying huge amounts. Good luck!

Reply

Pete Williams February 18, 2011 at 12:46 pm

There is another way to look at this; put everything you have into: Gold, Silver, Betting against the dollar and the euro and the Fed; don’t turn on the TV or computer for five years; stash enough to live until then; then open those things up and, viola, you are ultra wealthy and secure. That way you take the hourly, daily, weekly, monthly, and quarterly dips out of the equation. You will probably live a lot longer too. Sounds like a plan.

Reply

CJ February 18, 2011 at 5:19 pm

I like it!!!

Reply

Leo February 18, 2011 at 12:47 pm

wonder when Larry Edelson will issue a correction to his forecasts and what seem to be erroneous cycles

Reply

Steve Beckle February 18, 2011 at 12:48 pm

I’ve been long on silver for a couple years now with SLV, miners, and coins. I was waiting for the low that Larry has been predicting in silver, but with this week’s action I went long on January 2012 call options for SLV, SVM, and SLW, and provided a little downside protection by selling covered calls on my current holdings. I’m not selling a thing since 5 years from now all metals and commodities will be much higher than today. I don’t care about timing or entry/exit points….it’s go long baby and a few years from now it won’t matter if I didn’t exercise perfect timing when adding to my positions.

Reply

GDH February 18, 2011 at 12:48 pm

I subscribe to many services, and they are all in agreement with this market. It becomes apparent that this market is being manipulated by the Fed, and is not normal. I think the advice we are getting is sound, however the timing is off due to this administration’s QEs, and attempting to move the markets in the direction which is favorable to their agendas. I wonder if sanity will ever return, because now it is strictly a crap shoot, and we might as well be in Las Vegas.

Reply

Rex February 18, 2011 at 12:51 pm

While it is good to poll opinions, I would like to see more independent analysis on your part, not just asking your paid members to generate your columns for you and you picking out one or two opinions that support your own. If that is how you plan to work at least include those member opinions opposite your own also.

Reply

Bill February 18, 2011 at 1:12 pm

BTW, I do think you have to listen to your own analysis and use common sense. For example, EEP’s latest sell stop raise was tripped by a momentary dip below $61 on 1/20. A 6.x% dividend stock gone with a small profit. Now it’s 5 points higher. I let it go but did think seriously about buying the position back later that day.

These sell stops are vulnerable to market flaws. What’s the uncommon wisdom with regard to a HFT or institutional induced spike down triggered stop?

Stops are supposed to let me pay attention to other stuff like job, chores, etc. But these market defects make daily more more frequent tracking important still. Guess I’ll discipline myself to set alerts at the stop prices.

Reply

paul February 18, 2011 at 1:13 pm

I would like to get an input on how many and how much longer readers are willing to stay “short” Gold, Silver, SP and The Dow and how many are ready to change stradegy.

Reply

Hubert February 20, 2011 at 2:35 pm

I made some good money on Larry’s advise in 2010. In 2011 I am in the red. In the last few months I have hedged against the pullback advise gaining some and mostly losing on the short options. My short options are good until May. The charts make me think he is right on the imminent pullbacks. If larry is right I will make good money. If not, OH MY! I’ll stay in the red.

Reply

Natural Richard February 18, 2011 at 1:18 pm

How high can Gold and Silver go?
In the 1800′s a person could buy a good suit for an ounce of Gold or Silver equivalent.
In the early 1900′s a person could buy a good suit for an ounce of Gold or Silver equivalent.
In the late 1900′s a person could buy a good suit for an ounce of Gold or Silver equivalent.
In the early 2000′s a person could buy a good suit for an ounce of Gold or Silver equivalent.
In the late 2000′s a person will be able buy a good suit for an ounce of Gold or Silver equivalent.

Gold and Silver is a “store of value”. How high will it go is a reasonable question. A more important question to me is, “Will it have the same purchasing power 100, 200, 1000, 2000 + years from now”? I believe it will. Ask this same question about the U.S. dollar and/or other fiat currency and see what answer you get. I am 65 1/2. When I first started purchasing gasoline for my car (1961) it was $.25 (cents) a gallon. When I went into the trucking business at 19 (1965) diesel fuel was $.25 a gallon.

Reply

art February 18, 2011 at 1:34 pm

I also have been waiting for the pullback (per Larry’s strong inclination). Yes, the cycles say a pullback but it appears every small pullback has been met with highher highs.. In the long run the dollar will crash and we will have to have a new currency (this year Perhaps)! Corn, wheat, oil and silver will move ahead the strongest.. Gold will accelerate to 1500 -1600 this year . Hopefully Larry’s commentary come thru soon as I have been waiting .

Reply

ChuckB February 18, 2011 at 1:42 pm

My own analysis of the markets back in Nov. convinced me that gold and silver were due for a short term pullback, ao I sold my miners for very nice profits, intending to repurchase after a pullback. I agreed with Larry on the degree of pullback.
But now I’m beginning to wonder if the geopolitical developments, especially in the MENA, as well as the breakout in inflation of the buck, might not be throwing my calculations into a cocked hat. I would like for Larry and Sean and Mike to address this issue. Cycles have been known to err in degree, if not in their basic pattern, simply due to the human factor.
As a senior (82) with not very large resources (savings) this issue is most important to me.

Reply

Jerry Hug February 18, 2011 at 1:45 pm

$5,000 gold $5,500 silver

Reply

Col. Pete February 18, 2011 at 1:58 pm

I have been long on silver and have been buying it right along (forget gold as I cannot buy it in spendable chunks) for 30+ years and believe it will continue its steady climb.

Those who predict have been pushing us to buy gold up until lately – now they have finally decided there is more to life than GOLD. Stay the course with SILVER

Reply

Carl February 18, 2011 at 1:59 pm

Hey folks, hang on for the ride up in commodities. I believe they are all going much higher as the US Dollar continues its downward trend. Don’t worry if you have taken Sean’s advice on gold and silver as opposed to Larry’s, because I believe you will lose nothing; but gain a whole lot in the long run. So what if gold dips down some in the near term, because, as Larry says, in the long term it will just go up and up. He has been looking at gold and silver, and other commodities for that matter, more in terms of the short term, while Sean has been making recommendations with consideration to the long term trends. So both Larry and Sean have been right. Commodities of all kinds are the hot investment for the long haul for the foreseeable future. I believe, with Larry, that the US Dollar will fall big time, and it will not be nice here in America, especially in Urban areas.

Reply

GDH February 18, 2011 at 1:59 pm

The hardest thing for any investor is to not get emotionally involved with their choice. I know for my self once I pull the trigger and buy, either short term or long term, I now want my investment to go up and begin finding others who support my own opinion. Its interesting to go on some of the forums and watch the arguments about what a particular stock or commodity is going to do in the future as if arguing is somehow going to change the future of what that investment will do. My training as an accountant always led me to what the fundamentals, however the last 4 or 5 years, I watch the technicals much closer, and try and use a combination of both.
Gold, silver and oil is what I’m in now, and therefore try and figure out why it is not responding the way I want it to. Like I said earlier, the reasoning for these services to recomend buying or selling is sound. If we weren’t into these stocks, we would care so much that they are reacting the way they are. I’ve started buying the inverse of these investments, and taking profits along the way, but my belief that the market, the dollar, and commodities are going the wrong direction, but it doesn’t change the direction they are heading.

Reply

Ray February 18, 2011 at 2:01 pm

Larry and Sean both agree that gold and silver will be up over the long haul but Larry seems to be more of a micro-manager. Pick the one whose philosophy is closer to your own. For myself, I don’t plan to be left behind when they take off and I’m buying every chance I get. At noon today, Silver Wheaton is up $2.36.

If you don’t think things will go downhill, read this statistic:

http://gonzalolira.blogspot.com/2011/02/we-owe-how-much-waiting-for-big.html

Reply

Carl February 18, 2011 at 2:08 pm

As to Sean’s question today, How high can gold and silver go, and how should you play it? I have only one thing to say, both are going to go through the roof, especially here in America. That being the case, purchase a lot of gold, and a lot more silver, as I believe silver will be easier to use quickly for necessities. Someone, I think maybe Sean, at one time suggested having some Mexican currency on hand as well. I think it would be wise to also add some Canadian dollars. Have you seen that they have been at almost parity with the US dollar for some time? We live in an incredible time. If we are afraid of what is coming, ask Jesus for help, He will do so.

Reply

Carl February 18, 2011 at 2:09 pm

By the way, thank you Dr. Weiss, and all the team! We really appreciate you all so much.

Reply

Jim Anderson February 18, 2011 at 2:28 pm

Well, everyone is pretty much agreed that Larry and Sean are pretty good advisors over the long hall. I’d add Mike Larsen to the mix. The other thing is one can have too many advisors and not know who to follow. That is also evident from the above comments. Weiss want us to buy into all of his advisors, that would not be a good decision. I’ve moved all of my IRA money into gold mutual funds. They do a lot better than where I had them before. I’m shifting my 403 funds around to better take advantage current conditions. Then I’ve got some other money I speculate with. Larry, Sean and Mile have helped me a lot over the past several years. The situation in the middle east will cause some changes in their advice. But commodites are headed higher over the medium to long time frame.

Reply

Andreas Meyer February 18, 2011 at 2:31 pm

Now Sean is telling us to buy silver,
Larry tells us there will be a pull back.
Since six month we where told to get out of stocks, look
where we are now!
Also every week we are ask to buy a new recomendation this ads up to over 20K
in six month!

Andreas M.

Reply

Gary Schnicke February 18, 2011 at 2:47 pm

I’m still waiting (impatiently) for the crash in the Dow and the pullback in silver to below $25 that Larry has predicted since last November. I’m beginning to lose faith in you guys. Also where is Larry? No video or anything for the last two weeks.

Reply

L. Maleckas February 19, 2011 at 12:24 am

There was a video this week 2/17 from Larry via Uncommon Wisdom where he said he still stands by his expectations for gold and and silver to correct.

Reply

Neville February 18, 2011 at 2:59 pm

Your are an optimist while Larry is warning of gloom. Maybe you two should talk to each other and look for a consensus. Why do we pay for a subscription when you experts give such contrary opinions?

Reply

Bill February 18, 2011 at 3:05 pm

I think the question about how high can silver go is not the right question to be asking… the real question is how low can the dollar and all other fiat currencies go. My guess is to their intrinsic value… zero. Reading other comments here, it is apparent that there are conflicting predictions on prices especially over the short term. I think the reason for this is that people are trying to figure what is going to happen using tools that worked in the past. We are in uncharted territory and probably about to witness the end of the world as we know it… so please stop relying on tools that worked in the dying system. For me, I reckon an ounce of silver will always be an ounce of silver and I expect to have a better shot at exchanging that for what I need in the future than I do a piece of paper… therefore I buy regularly whether it is going up or down… it averages out and I don’t sweat it too much. I feel happier with silver in my possession than any amount of electronic digits on a screen…

Reply

William Fore February 18, 2011 at 3:05 pm

In January REAL WEALTH Larry recommended DGZ to offset a predicted short term drop in gold. Is that still valid? Or is gold going to go on up from here? Is the predicted sort term drop not likely to happen? Should we therefore unload DGZ?

William Fore

Reply

JIM RICH February 18, 2011 at 3:36 pm

I like the idea expressed to watch the dollar more than gold or silver as long as we need paper currency to buy or sell. Meanwhile obtain some land while it is still relatively inexpensive {preferably with others}and start learning no-fertilizer no-till gardening skills.

Reply

Herb Beckerdite February 18, 2011 at 4:03 pm

My present modest investments in Gold and silver have treated me well and am inclined to continue this approach. The world’s problem in the not too distant future, in my opinion is food for the masses. Agricultural crops cannot be turned on and off like even a mine or well nor remain dormant through climatic changes both short and long no more than humans can go without food for any length of time. Mid term and long term I expect that food crops and distribution will have the greatest effect upon stability on economics and governing of the masses.

Herb

Reply

KAYE February 18, 2011 at 4:25 pm

targets: gold $2500 based on that silver $300

Based on information from Ted Butler, who won’t set a price target or a time: 1) Massive short positions by Chase and seven other banks that are trying desprately to cover their positions 2) Increased demand by smart investers who are trying to get in on any minor correction 3) Helicoptor Ben, who is trying his best to greatly inflate our currency 4) Increased usage and growing applications in products due to silver’s amazing and unique capabilities 5) The battle over setting position limiits as directed by recent legislation from congress
I BELIEVE THE INTERACTION OF ALL OF THE ABOVE ARE PREVENTING THE “NORMAL HEALTHY CORRECTION” THAT LARRY IS LOOKING FOR AND THAT EVENTUALLY SILVER WILL “EXPLODE” TO THE UPSIDE.

Reply

Herman February 18, 2011 at 4:50 pm

There can be no question now that, due to the uncertainty in the Middle East, oil will rise this year to $150/b. Everyone seems to have been holding their breath waiting to see how events will unfold and I have been waiting for the exhale.
Also, there are so many variables impacting world markets/economies; droughts, floods, freezes, increasing demand, improving emerging economies, unrest, riots, inflationary pressures, debt loads, consumer confidence, that conditions will continue to force prices higher.
Gold could double or more; the poor man’s gold = silver will see even greater gains especially if JP Morgan’s contracts are called in. The rise in consumer staples will begin in earnest mid year once the market increases catch up with the consumer. Last year manufactures kept prices down due to economic conditions. Instead, packaging shrunk to offset losses. No longer is a pound of coffee a pound. Now it is 12 oz of coffee. A cereal box is now half the size. This time around the consumer will feel the pain.
The Euro will be fortunate to survive the year. If the Euro goes, watch for the dollar to follow. It is a time for preserving wealth. Forget about trying to lure me into making profits. I just want to hold onto what I have. I can no longer trust in a rigged market, nor in capital investments with the markets overwrought with ponzi schemes. The CFTC, FBI, and SEC can not handle the workload. The thieves are winning!
There will be no shortages, but will we be able to afford the costs?
My bets are in, gold, silver, oil, and staples.

Reply

ChuckB February 18, 2011 at 6:44 pm

Looking over the remarks above, my impression is that many of us are getting somewhat antsy, waiting for the shoe to drop. I share that to some extent, but think this means it’s not the right time to take any drastic action. Some think because Larry still looks for a greater correction in gold/silver, while Sean gives us a buy, it means they disagree; but they are just looking at different time frames. Both look for much higher prices over the long term.
For Gary Schencke, you must have missed Larry’s regular Thursday message – he sticks by his guns.
I agree with Herman – I’ve been watching the shadow inflation of smaller sizes for the same (or higher) price. or utilities trying to add a buck or so one day, and another a few weeks or months later,etc. It may not be long before prices begin rising monthly, then weekly, then daily, then hourly. Zimbabwe, here we come.
As for the price of gold, it will soon be well into the thousands – eventually, maybe by next year, in the scores of thousands, the millions, billions, trillions of dollars per ounce.
Or, perhaps Ron Paul and son can finally get the word out of what fiat money is doing to everyone, world wide, and convince people to demand money backed with SOMETHING of real value.

Reply

Mike S. February 18, 2011 at 7:12 pm

Silver will go to $50 or more and gold will go to $2500 or as high as $5000 in the coming years. Best way is to use ETF’s to cash in on these commoditites.

Reply

vic February 18, 2011 at 8:31 pm

I’m late into the blog. Share your confusion on gold and silver. My interpretation is based on the gold cycle from Larry dated Jan 3, 2011. The drop in silver timing was spot on before turning into the upleg we seem to be in. However, silver didn’t tank to the 24 -22 support base. I can fully understand that it should to satisfy laying a foundation for the leg up. That may occur on the next cycle projected to be in July before the final leg up for 2011. An old tale of ” Sell in May and go away, jump back in after Labor Day” has been very accurate for gold over the years. Hope Larry can sort all this out for us. I personally would like to know how much faith I can put into the cycle research timing to grab some call options where time decay is important. In the long term I think both Larry and Sean are correct.

Reply

Herb S. February 18, 2011 at 9:35 pm

Have heard many comments lately about substantial pullbacks in metals. I have a personal hold on further purchases in silver and gold, but as the metals, and other commodities, continue to push upward in this surprising market, I feel that I’m missing upside potential. Here I sit…on the side lines, waiting for the much touted downward adjustment, so I can add to my metals holdings. What to do? What to do? Who’s got the crystal ball? Larry? Sean? Anybody? For the time being, I’m sticking with oil and energy.

Reply

Merton E. Domonoske February 18, 2011 at 11:27 pm

Four German Mark in 1914 equaled one U.S. Dolllar. By 1923, the year I was born, it took one billion marks to equal a dollar. It is not how high gold and silver will go but what fraction of a cent the dollar will be worth in the future.
I own a patented gold/silver mine. Grampa between 1884and 1887 mined $20 million in gold and silver, at todays prices, and shut it down when silver dropped below a dollar. I have written letters to the CEO’s of Hecla, Couer d’Alene, Allied Nevada, US Gold, etc., about my mine, but several months have passed and not a one has had the courtesy to reply. Hope they will throw their backs out of joint kicking them selves in the butt when we get mining again.

Reply

Geezer Bela in Exile. February 18, 2011 at 11:49 pm

It might be useful to review what happened to gold and silver prices and what Larry said about it.

Gold showed a reverse head and shoulder in Feb 2010 and had a ralyy from April through May. It began another rally in Aug 2010 that lasted through December 2010. That rally took gold from 1150 to 1450 roughly. Larry saw the double top in gold in December and correctly forecast a correction. One Fibonacci would retrace 1/3 of the rally to 1350 and two Fibonacci would take gold price to 1250. Larry predicted a drop to 1250, possibly lower. However, gold retraced only to 1315, which was in between the 1/3 and 2/3 retracement. If you look at the gold chart, you see another reverse head and shoulder, with gold doing the armpit of the second shoulder. Gold is giving every indication of resuming another rally in 8-12 days. Some of the gold miners are also doing the same pattern (such as THM), but not NAK.

Silver looked like it was going to do another reverse head and shoulder, but it skipped the right shoulder and hit a new closing high of 32.8 today.

The silver rally last year was slower to start than gold, but it is now breaking ahead of gold.

I think it would be a big mistake to ignore the reverse head and shoulder. It’s like the Weatherman looking out the window before he reads his forecast of clear sailing.

It is possible that the Fed is manipulating the Market via some pet banks (so as to let China pick up gold), but we now see price inflation (27% in theast 6 month) and it will not be possible to keep down the PMs. Fundamentals are bullish: 1. revolutions by Islamic fanatics in the Middle East, 2. mob rule in the US in some places, 3. accelerating inflation and 4. the threat of default by some states and by the US via a budgetary impasse. Chaos awaits us.

Reply

Merton E. Domonoske February 19, 2011 at 12:14 am

Please ignor my comments above. I apologize as I should not have named mining companies. I would be pleased if Sean Brodrick were to contact me as I have a great story about an old mine
Merton E. Domonoske

Reply

Ruben Banuelos February 19, 2011 at 12:43 am

The investment in precious metal is not about profits but value preservation. It is like a secure saving account on the mattress . Accumulate more (buy more physical on every deep ) AND SAVE MORE MONEY UNTIL THE NEXT PULL BACK TO BUY SOME MORE METALS AGAIN (THAT”S WERE THE PROFITS ARE) DON’T TRY TO TIME THE MARKET

Reply

Rob February 19, 2011 at 8:05 am

Buy physical silver lock it up and wait the bullion banks blood is in the water.I believe waiting for a pullback to 22-24 $ is risky may never happen will it really matter what you paid when it goes back to historic gold silver ratio 16 to 1.As we speak more money is going into silver than gold only one outcome possible.

Reply

Jack February 19, 2011 at 12:43 pm

Believe Larry sees a sharp fast break coming to the downside to bottom mid to late summer with his cycle work.. Meanwhile Sean is looking at the current price movement which looks strong on the charts near term. So, very short term up…. mid-term a sharp break. Once the break is over, a continuation of the bull market in silver and gold, after some base building. The Precious Metals Bull shows 21 years up….we are only 1/2 way at this point.

The DX, or dollar index needs to show temporary lows in place and then metals and stocks will have there pull-back.
Look for silver to go to a minimum of $600 an ounce in two big blowoff moves that will cluminate 2020 to 2022.
This may help, as the best way is to dollar average your buying cost….here is a way to do that in physical silver.

I found a place you can buy a little silver each week and they will store it in there vault. You can leave it there until you decide to take delivery or you can opt to take the cash as silver rises. Best of both worlds.

What I like best is the idea that you can buy small amounts at a time without paying a large premium.
http://www.SilverGoingUp.bigbig.com

Prosper with silver,

Jack

Reply

robert February 19, 2011 at 3:40 pm

Larry said the Dow has major resistance at the 11,189 and 11256 level.He also said he doubts very much the current rally in oct. 2010 would exceed those levels and now passed by 1000 points.What happened.

Reply

BOSTON February 19, 2011 at 6:47 pm

WHERE DOES ALL THAT CASH GO WHEN THE MARKETS HEAD SOUTH? IF YOU KNEW THE ANSWER TO THAT, YOU’D FOLLOW EDELSON. PM WILL DECOUPLE AND ARTIFICIAL SWEETENERS ARE SAFE. THE BUCKS GOING TO RALLY. WE’VE SEEN THIS BEFORE.

Reply

BOSTON February 19, 2011 at 6:51 pm

WHERE DOES ALL THAT CASH GO WHEN THE MARKETS HEAD SOUTH? IF YOU KNEW THE ANSWER TO THAT YOU’D FOLLOW EDELSON. PM WILL DECOUPLE AND ARTIFICIAL SWEETENERS ARE SAFE. THE DOLLAR WILL RALLY. SEEN THIS TOO MANY TIMES. BE CAREFUL TRADING IN PAPER INSTRUMENTS.

Reply

William m February 19, 2011 at 7:01 pm

I agree with one poster. Is it possible due to the new political events here, Europe, and middle east , have larrys views changed, if so man up and let us know!

Reply

William m February 19, 2011 at 7:10 pm

Hopefully Larry will post some clarrity soon and give an update.

Reply

ed February 19, 2011 at 7:24 pm

More conflicting comments from Weiss…this morning Tony in Asia says “the sky is falling-the sky is falling” with respect to the U.S. dollar…advises you run for the hills.

Then 10 minutes later Brian Rich says:

“The dollar has the fuel to make its next leg higher. And I think it can go a lot further and extend a lot longer than many people expect…the dollar is looking more and more appealing to global investors…”.

I really wish these guys would get on the same page or at least the same CHAPTER…such contradictory advice from the same “house” hurts the credability of ALL thier “experts”.

Reply

Brian Riordan February 21, 2011 at 3:31 pm

I have a problem with that too. I wish they could get on the same page on all this. I go away from that group entirely and when the ‘other group’ can concur with most of this, I will make the trade.
I’m not really crazy over making fast short term trades. I like the long term and not have to baby-sit the thing. With a lot of my stuff like resource and minerals, that is what seems to work with me. I’ve been doing this for over 20 years and my long-term like Elderado and ALS have paid me handsomely. They have been both SELLS over the years but I just stayed in. Elderado was a STRONG buy when it was twelve dollars. I bought it years before that, for twenty three cents. I like long term and I like to trade a “Best Buy” on the cheap. Brian Riordan

Reply

Alan February 19, 2011 at 8:53 pm

I have also been listing to David Banister for 8 months and has been spot on. he told his readers to but silver at 19 said it was going to 29. Lately he said silver was going back down to 25-26.50 Right on. No he is saying 39-44. All aboard. LE has been off has been calling for dow 9000 for 5 months.

Thanks Alan

Reply

Bert Warren February 20, 2011 at 1:15 am

Jean,

It does not matter how high gold and/or silver go if you exact your trades properly based on their intraday fluctuations.. It does matter if you buy at an intermediate high and take a lose on a marked temporary correction.

But to answer your question, it is my belief, based on current and projected economic conditions, that both are headed higher with silver taking the lead. As to exactly how high each will get I just do not know. What I do know is that I will close any positions I have in both shortly after they start their descent. To assure this, I shun overnight positions.

Bert

Reply

Dr. Duck February 20, 2011 at 3:45 am

Hello everybody,
I am a long time fan of Sean, and I really appreciate his views and inputs.
I think we will see gold around $2,600.00 an ounce and silver at $90.00 an ounce before
the end of the year 1011

Reply

Brian Riordan February 20, 2011 at 11:52 am

I bought most of my Silver coins for $4.72 and all of my Gold coins for around $295.00. Just held on to it since the 1980s. Added to them at higher prices, and have followed Ted Butler and Ed Steer. Larry and I concur with them. I am still adding to the Silver Maple Leafs and Eagles pile for around $30.00.
As long as J. P. Morgan and HSBC are still around to manipulate those metal markets, to their own advantage, we will not see any serious breakouts without deep and punishing pullbacks.
End of the year? Gold might reach $2,000.00 and Silver $50.00. If we have a currency crisis, outer space is the limit.

Reply

Tom February 20, 2011 at 6:43 pm

Just follow Larry Edelson.s advice and you’re sure to go bust.

Reply

emma anders February 21, 2011 at 3:25 pm

How many years will oil stay high?

Reply

Paula February 21, 2011 at 4:23 pm

I think if they all felt the same you should be a little concerned. Sean, Larry, Tony etc. I think in long term they feel the same but short term different ideas. I believe gold and silver will drop back down as a correction. Shot up very high, very quick. I believe Larry is spot on. No one knows for sure but that is the beauty of all the information. You take what makes most sense to you and your needs and you go for it. Either way… you will still make out if you buy now at higher prices or if Larry is right and you get in a few dollars less. Its going to be amazing to watch all this unfold. Scary… but the time has come to pay the piper. We the people have to pay….. so protect yourself and family to the best of your ability because it is soon to break loose in America. Expect the best…but prepare for what is coming and stand strong in the storm by preparing in advance. It will take most by complete surprise.
God Bless

Reply

Larry8888 February 24, 2011 at 12:42 am

Looks like a blowoff to the upside is finishing. Look for a rapid 50% decline in all commodities and the total wipeout of thousands of investors.

Reply

Stan Aufdeheide March 2, 2011 at 9:56 am

I believe in what izzie Friedman and Ted Butler have been saying for years, Silver will hit $1000.00 an ounce and eventually outsell gold, which is purely a visceral metal.

Reply

bj March 5, 2011 at 8:45 am

Just buy the metal, put it somewhere safe and stop worrying about it.

Silver to pull back to $23.00? In your dreams people, $26.00 in January was your chance.

Next pull back MAY be to 30ish, if its a significant correction.

This is bull market, those that wait for $23′s get left behind, like some of you did.

When gold goes, it will go quick and fast, don’t think to long.

Reply

ed March 26, 2011 at 1:00 pm

What the heck is going on with KGC? This was one of Martin’s darlings previously, echoed by Clause (SP?)…

Bought it based on their recommendations and have watched it tank ever since despite record gold prices. Makes no sense to me, but then again, that’s why I listen to these guys…

Now you have Sean saying buy as much as possible and Larry saying he wouldn’t touch gold or silver with a 20′ pole until coming back to $1200 and .23 respectively…contradictary advice from the same company.

Maddening.

Reply

Irene April 21, 2011 at 12:09 pm

Silver is at $ at 46.00 an oz. today

Reply

Dave Carter Sr. May 19, 2011 at 12:17 am

I believe there is no limit to how high Silver and Gold can go. Silver is around $34.00 an ounce and Gold around $1590.00. I believe Silver could hit At least $90.00 an ounce and Gold could top $3500.00 to $4,000.00 it will depend most on the fall of the Dollar and lets face it the way obammy is spending it and giving it to other countries and the government just keeps on printing more, more, more.

Dave Carter Sr.

Reply

David Getoff, CCN FAAIM May 27, 2011 at 5:33 pm

Well gold is still the steady one and silver has hit 48 and dropped the next week by 25+%
If you pull 6 year charts 2005 to present gold is up about 350% and silver about 760%
SInce many experts say that 12-15 ounces of silver should purchase an ounce if gold (if they are to be related to one another in the ways these experts believe) than the 39 ounce ratio of today is way off and silver is tremendously undervalued. But are they right. who9 the heck knows. Better to invest equally in both and figure that as long as we keep printing money with no backing, these metals have (finally) become a good place to save some of our funds. The metals brokers have been telling major lies on the radio for decades, but now the metals have actually become a descent palce to put some of your funds. With most of the foreclosures still being held off the market by the banks to create the illusion that there are less than there are and that they are selli8ng at a descent clip, and with more people out of work but since their unemployment has run out, the news lies and tells us less are on unemployment (it ran out but they are still out of work) our economy is still tanking. Gold and silver may be a pretty good place to hold extra funds as long as we understand that NOTHING is certain and EVERYTHING is actually speculative especially holding funds in the bank in our silly U.S. dollars

Reply

Leave a Comment

I agree to the Terms and Conditions of this Website.

{ 2 trackbacks }

Previous post:

Next post: