Le Metropole Members,

Sunday Reminder/Focus On Bullet Points For Gold And Silver

*The horizontal bases in gold and silver, on a technical analysis basis, are enormous.

*The power built up in these bases is formidable enough to catapult both precious metals to much higher prices, and quickly, once a real breakout occurs.

*The trading of silver within its base is particularly narrow and tight ... meaning it will lead to very explosive price action on the real breakout.

*Three to four weeks ago, three top rated sources of mine, coming from different points of view and input, said that August would be the month gold and silver would launch higher ... a launch that would lead to all-time high prices.

Of course, only in hindsight will know if that input is on the money. But, since I know the sources, my money is on that bet.

*One of the sources says that JP Morgan still has a problem with their silver short position and this ought to come to light in the not too distant future. That problem is in some way related to their "whale trading loss" and the silver position JPM inherited from Bear Stearns years ago.

*The bullish sentiment is extremely low for the precious metals ... and when it comes to the gold/silver shares it is off the charts low. I know of THREE investors who threw in the towel over the past three trading days after investing in the precious metals sector for many years.

*If there ever was a time to be paying close attention to gold, silver and the shares, this is it.

*The US and Europe remain in a NO SOLUTION environment to their fiscal/economic situations. The politicians on both continents are not dealing with reality as those situations worsen by the month. All they have is "hype." The only way out will be massive monetary and fiscal stimulus.

This is why major league buyers, such as governments (South Korea of note recently) and EXTREMELY high net worth individuals are buying on the dips every time The Gold Cartel influences the prices of gold and silver on the downside. The Gold Cartel is exhausting their resources at these price levels and will be forced to go into managed retreat mode yet again. Because of this buying, gold has gradually rebounded from Gold Cartel poundings at higher levels since May:

http://futures.tradingcharts.com/chart/DG/