Dear Jim,

Gold in dollars has now ended above 1200 for three days.

Lately I have read some of Mr Armstrong’s pieces again. On March 23, 2009 he wrote in "Destroying Capital Formation":

"The next technical barrier will be slightly above the current high, forming at the 110 and 1200 area. Once we begin to see gold close above the 1200 level, then we should start to see the Phase Transition type move that will carry it upward to about $2,500. It is still entirely possible for gold to even reach $5.000. That is the extreme projection that would signal serious decline in public confidence in government as a whole. Reaching $2.500, is a normal stage of market development. This is still not the end of the world.""

Do you also feel the euro can break down any moment now and that gold can go into this Phase Transition as the euro breaks as the first but not last currency?

I am so glad I bought another gold coin last Friday. My sales contact in Brussels told me he saw sales jumping during the last few weeks. Before people were almost only selling but now they are buying as well, especially people who did not own gold yet.

Greetings from Europe,
CIGA Jeroen

Dear Jeroen,

This leg of gold will see bullion trading at $1650.

Regards,
Jim

Dear Jim,

Regarding your last evening’s message to CIGAs:

I can only add that the market is beginning to discount/recognize a reality fraught with the consequences of the unprecedented liquidity dump across the globe. There are subtle changes within the capital flows that reflect increasing uncertainty by deep pockets and connected money.

For example, gold is acting strongly during an A-wave advance. It should break above the C-wave high soon. A break to new highs is not a dominant characteristic of the A-wave cycle. This subtle change reflects the growing loss of confidence, a fear that no amount of rhetoric can dissuade, within the fiat system.

Regards,
CIGA Eric