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. Harry Schultz
Life Strategies Gold is the anchor; all else is a wild seaHarry Schultz Meantime, gold at a 16-year high is beginning to draw a crowd. It isn't yet a gold-rush, but it's building. Some late comers wonder if it's too late to buy. "It's never too late to do the right thing", but if U have too little or no gold positions, U can start progressively - ie, average down if we get a correction here, as seems likely after 10wks of uptrend. If we don't get a correction now, U can average up, slowly, & more if we get a drop later on. How much of a drop if now? Maybe only to 420-430. Weaker case: 400. Upside target? 460-467 medium term. But such targets aren't vital or practical, as bullion & gold index & individual gold mine charts tell U when to take profits, & when to buy back, along the way. Yes, we'll get to 500 before too long (2005), a big psychological barrier. And still higher later, but buy&hold would keep your nerves tight & your profits restricted. Selling is the only important word in every mkt. Sell to take profits & buy on corrections gives U 3-4x the profit potential, & without the "I wish I sold last wk when I had a big gain." With gold catching fire & breaking out from a major resistance zone, my Gold Charts R Us is back in fashion. A few subscribers took to the sidelines when gold topped out last April & fell $60, but they're now coming back as odds are more favourable & the wind is at our back. Some Hslm's who have never tried GCRU are also having a go. The recently remodeled GCRU features a page for trend-investors, a page of energy stocks & a reshaped format for traders. I hope U'll come on board. GCRU is the only service in the world that provides best-buy gold charts, weekly, with analysis & specific buy, sell, target & stop numbers, which are now easier to follow than in our earlier growing stages. Most get GCRU by email, but it's also avail by fax & even mail. With the plunge of the US$, the rise in gold/oil & inflation, one by one, every hard-money investment class is blossoming. One analyst said: it's time now for numismatic coins to bloom. So I asked Hslm Ed Lee for his view. He said: "It's already well underway, but still early days. I recommend commemorative silver half-$ coins circa 1892-1946. Selling for 25% of ex wholesale highs, is like buying gold at $250. Also US$20 gold MS63 & MS64. No tax on profit unless liquidated." Ed at: edlee2001@aol.com or US tel 800.835.6000. or 603.429.0869. US fax: 603.429.2095. People with euros, SwFr, etc, who buy US coins in US$ get a de facto 30% discount due to $ fall.
Big Picture The ungood bang? Can
Americans feel safer now that the anti-Bush terrorists
see that a majority of Americans support Bush? U decide.
It was a negative signal to those who, 'til now, blamed Bush,
not the average citizen, for Iraq. Will every American now be
seen as a unilateralist? The situation wasn't helped when Colin
Powell announced on Nov 8 that Bush&Co will be "as aggressive
as ever" in their foreign policies. Defiant - to what end?
I heard some Cringing.
Not all Americans want to chance/risk/wait
for better candidates in 2008. Or live in the target country
of bin Laden's angry followers. Multi thousands want to leave.
On Nov 3, Canadian web sites were jammed with 250,000 requests
for info on emigrating to Canada. Consulates around the world
report non-stop calls from Americans abroad who want to switch
passports. Canadian minister said, with a smile: "Refugee
status for Americans is not likely." Also, a flood for emigrating
to UK & France. Euro journalists say they got emails on how
to find jobs in EU. This also reflects the bitterness
during the election campaign, which has not reversed as
in most past elections. The differences this time are too emotional.
It seems nobody has changed their mind about anything Americans don't realize that, as the NYTimes puts it, the election was a race "in which the rest of the world (R.O.W.) claimed an enormous stake." The world was not just a bystander. Their stake was akin to colonies of the British Empire (& all other empires in history). If U lived in India, Burma, Canada, Oz, the 13 American colonies, SoAfr, HK, or Singapore during the Brit. empire, then who ruled England (& how) affected every colony. When George III ruled, he foolishly raised tea taxes for the American colonies & that triggered a revolution. But for that mistake, the US might have remained peacefully in the British Commonwealth. Today, George IV rules the American empire (with its different methods but identical economic goals) & US regulations are imposed on every nation, increasingly since 9/11 & the wicked Patriot Act. Eg, to open a bank or brokerage account in any nation today U must sign papers related to US rules & clarify your relationship to the US. To fly in an airplane anywhere, U must adhere to US-imposed rules. Same for sea lanes. US Navy can board any ship now; freedom of the seas is gone. Passports must be revised to US standards, even if U don't intend to go to the US. If U fly to or through the US, your name must be given in advance to the US. Flying anywhere requires security measures imposed by the US. The list of US empire rules imposed on the world is very long. Individual freedom & privacy have been under merciless attack. So, yes, the world had a genuine stake in the election. They didn't want Kerry but they didn't want Bush even more. They voted massively in opinion polls for Kerry in hope he might defang the 1984 Big Brother monster now out of control. Patriot Act being the last straw. Akin to a tea tax? Small wonder very few cheered US election results in the R.O.W. Typical reaction: M.Muller, vice chairman, Germany's Social Democratic Party, said Americans had returned a "fundamentalist" to the White House & "that is neither good for the world nor for a democratic America." (his words, not mine. I'm an interpreter. U need to know how the R.O.W. thinks). Will the R.O.W. fight back against the imperial BigBrother bureaucratic edicts imposed on them? Maybe. Some banks & brokers already refuse US clients, to avoid onerous, time-wasting, pointless, privacy-invasive US rules. Some won't buy US stocks due to US tax on dividends & invasive forms to sign. Many no longer visit or transit through the US due to horror stories from some visitors on entry & permission to leave at some ports. But the "colonies" aren't yet organized to fight back big. That'll be years in the making, as was the gradual dissolution of the British & other Empires. The US empire's power has probably peaked according to some historians. But giants usually fall slowly
at first, then collapse in a heap toward the end. The country
will endure. But the empire will fade away - as it did
with England, which endures. So it goes with all empires. It
will be for the best for all. Gold will possibly be US$1,000
or $2,000 an oz at that point (& oil at $200 or $300), reflecting
the system's deterioration. The US$ may be a "peso."
The £ & the yuan may be the major reserve currencies.
••Will Rogers said:
"Elections are a great deal like marriages. There's no accounting
for taste. Everytime we see a bridegroom we wonder why she ever
picked him, & it's the same with public officials."
•••Tit bits: Will the Canadian-$
overtake the US$? It's risen from 71c to 84c over last 7mos.
IMO, yes! •••Look at the chart of Fannie Mae if
U want to get gray in your hair to look distinguished. Lots & LOTS more follows
for subscribers,
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Ironically, Bush was not elected, according
to exit polls & best analysis, for his foreign policy. Perish
the thought. Iraq rated only #5 on the list of average voter
priorities. Aside from hardcore party-line voters, the swing
voters were concerned mostly with so-called social issues: abortion,
education, gay marriage, healthcare, & prescription drugs,
the latter two strictly pocket-book items. I find it amazing
that so many Americans care less for their national security
than personal security. Human nature? 
. The increased
carnage in Iraq convinces the anti-war side they were right,
& that the US is now more of a target.