The Bear market Rally in stocks that started March 9, 2009 is coming to an end - What's ahead for Gold - Silver - SP500 ??

The bear market rally in stocks that started March 9, 2009 is coming to an end

World economies have entered their slowest growth period since 2009. Our concern is the future deterioration of the greenback, an expanding money supply and rising U.S. National debt will eventually push domestic inflation higher, negatively impacting the American economy and equities.

We expect S&P500 to Top out @ 1846 - 1918 before the much awaited correction or deep drop targeting 1318

You see, over the past few months, we have seen a significant amount of negativity in the gold bullion market. On some days, the precious metal’s price has fallen more than two percent in a matter of minutes (I will let authorities eventually decide if it was a case of manipulation). But when no one wants a particular type of investment, that is often the best time to buy. Go back to 2009, when the stock market was plunging. No one wanted to buy stocks. In the midst of it, in the spring of 2009, we saw one of the best buying opportunities for stocks ever. I believe gold bullion is in a very similar situation today.

Opportunity for Gold Today Same as It Was for Stocks in 2009 ?

At the center of the “Gold story,” aside from the fact that central banks are buying gold again for their reserves, demand by the countries that are known to be the biggest consumers of the precious metal (I’m talking about India and China) keeps climbing.

While the Indian government and its central bank have been trying to curb demand for gold bullion by its consumers, this has only given birth to an unprecedented level of gold bullion smuggling.

According to the World Gold Council, 150 tonnes to 200 tonnes of gold bullion will be smuggled into India this year. Between April and September, Indian customs authorities seized almost double the amount of gold that was smuggled into India in 2012. (Source: Reuters, December 4, 2013.)

In an effort to curb the smuggling of gold bullion into India, Mumbai customs authorities said that they will give a reward of 50,000 rupees per kilogram of gold confiscated as a result of tip-offs. Rewards for informants who lead customs to cocaine and heroin seizures are only 40,000 rupees and 30,000 rupees, respectively!

Demand & Supply Highlights (Details in Gold 1000 or 2352 article)

In China, demand for the precious metal is strong, too. In October, imports of gold bullion from Hong Kong into China were registered at 121.19 tonnes—the second-highest amount on record after March of 2013, when 136.185 tonnes of gold bullion were imported into China from Hong Kong. (Source: Reuters, November 27, 2013.)

From a technical perspective, when you look at a short-term chart of gold bullion prices, you will see nothing but negativity. You have to keep in mind that in the short term, emotions and speculation prevail. The best idea is to look at the long-term picture

We are expecting to see Gold @ 1560 - 2352 ahead / Long term & Silver @ 52.60