Gold is very likely to go incredibly high. $1650 has been promised by a man I find to be seldom wrong on long term matters, Jim Sinclair.

He has often stated of late that his forecast is/was very low. He looks for numbers given by Armstrong and Fields to be more likely. Both of those forecasts are in the $5000 / oz range or higher.

Tyhee continues to (with regard to the little train that could illustration) load on firewood for the boilers, water for the steam, and grease for the wheel bearings. It doesn't seem to be going anywhere at present; but preparations are necessary before any long trip. Soon it will depart up into the heights of the mountains where the air is clear and one can seemingly see forever into the distance.

I doubt we will see a press release into the teeth of an options expiry decline. You will note that the "masters of the universe" chose to let the price get high enough that their massive shorting program would have a significant effect. They simply cannot let all those long options on gold do anything but expire worthless; that is their reason for existence. Someday they will fail and the fireworks will go off, the time for that is not known.

An additional point, the G20 meets this weekend and the 'masters" certainly want to constrain any thoughts that paper currency is utterly without value, while they discuss how to flood the world with the stuff.

Meanwhile "the little train that could" continues to prepare for its departure. When will it leave the station? One cannot know for certain but after this smackdown (during which gold has shown abnormal strength) the PFS news will be released. It wouldn't be the end of the world if it were released before; but it should have more effect at the end of the month or early to mid July. I certainly wouldn't complain if it were "late" for a strategic purpose, though detractors might make an issue of it.

Gold stocks have been in a consolidation pattern for thirty years. Gold wants to go and those who are expert in that market unanimously agree that it will do so spectacularly. Gold stocks will soon break out from a thirty year consolidation pattern and begin a bull market like gold has experienced over the past 8 years or so IMO; only with the added benefit of their built in leverage. Gold stocks follow gold, they are a derivative of gold; they do not lead gold.

I don't know if we are currently at the "Last Chance Gap" stop or not, but the little Tyhee train has that stop on their itinerary. Once that train gathers speed and starts heading up into the mountains it doesn't stop to pick up passengers any more. More will get on board but not with safety and not with the comfort we now have. We have the option now of getting on with all the baggage we wish to take. Others will be carrying book bags and fannypacks by comparison as they will need their arms free just to board the speeding train.

My opinion. Better get your luggage aboard soon. It has just become summer; by mid fall you'll be trying to board a train that has gathered the speed to rise to the tops of the hills ahead.

P.