If a bull market truly climbs a wall of fear, then the “mother” of all gold bull markets remains fully in place. In just a few days after reaching all-time nominal highs, gold and silver is for the umpteen time being wildly bantered about as topped out –again! And as usual, the horrifically wrong gold bears and the media that continues to provide them “crying wolf’ space, continues to draw lines in the sand saying this time is indeed different.

Can gold fall all the way to $1,250? Yes, it’s possible. It’s also likely the Seattle Seahawks win the Super Bowl. Should you bet on either – not wise IMHO.

Sorry but after being on the right side of a nearly 400% move that I said all along shouldn’t end until at least gold hitting $2,000, I’m not “holding hands” anymore. If people like Jim Sinclair and Bill Murphy haven’t earned your respect by now, why on earth should I try to convince you the “mother” of all bull markets remains intact? If you choose to disregard people who have been right basically for a decade and instead listen to “crying wolf’s” and the latest in a long line of top callers who all up until now have been eaten up and spat out, well, there’s nothing I can say that’s going to make you realize how costly these folks would have been to listen to up until now.

My target for gold in 2011 remains $1,500+ and $35+ for silver.

Can we correct some more and be choppy for several weeks? Absolutely. But like so many times before, most of the surprises IMHO shall be to the upside.

Downside risk is around $1,320-$1,325 with ultimate support at the 200-Day M.A. but I don’t think either is in our future. The most conservative route if one chooses is not to do any new buying except at each key support level and/or a break above old highs.

Key support for silver is $25 area and then 200-Day M.A. I would be more comfortable with less space between current price and 200-Day M.A. so having that key M.A. catch up isn’t a bad thing.