Gold and Silver trending lower. US stock market moving higher along with US dollar. TSX Venture starting a major upward trend with junior commodities doing well. Looks like a good time for NOT to give us some news.

Bob Moriarity of 321gold had an interesting article in which he patted himself on the back for correctly calling the gold/silver correction.

 http://www.321gold.com/editorials/moriarty/moriarty032408.html

 He then went on to predict:

"This is going to be a really weird prediction. Last week I nailed the biggest and fastest gold and silver correction in history. It was the best call anyone has made for 28 years on gold. This week I'm going to predict gold shares are going to explode upwards starting immediately. ESPECIALLY the juniors."

This is an interesting call that initially doesnt seem to make much sense. Junior pm stocks rising while gold and silver prices are undergoing a correction that could take gold to $850. Moriarity attributes this to the fact that the juniors haven't yet particiated in the gold/silver increasing prices. He finishes with the argument that if gold and silver can correct downward and the US dollar increase upward when the Fed has cut interest rates by 75 bp and flooded the economy with billions of dollars - then the junior pm's can go up when gold and silver remain down. He finishes with:

"After a short and brutal correction, gold will resume its climb. Gold and silver have not peaked. They are money and when all currencies fail, they will be the last man standing. We will go back to a gold standard not because anyone wants to but because there will be no other alternatives. Whatever country goes to a gold standard first will have the new world's reserve currency.

But what of demand for such basic commodities such as copper or the base metals? Rick Rule did an interview and had some great comments on the demand for copper. I agree with the Chinese. Demand may crater in the US but the Chinese are quite capable of consuming and they can pay for what they buy.

Buying gold stocks in the middle of a gold correction may seem a bit contrary but contrarians make money. Gold moved from $650 to $1030 without moving the juniors. If it can do that, it can move from $1030 lower and still have a gold share boom.

I'm a buyer and you should be buying with both hands. You are always playing the odds and the odds favor a 50% move higher in the next six months. That is what has happened every other time the ratio got so off balance."