Greece, currencies, gold

I've been warning of sovereign debt problems for 2 years, advocating gold and silver for years, and sounding the alarm bells of Dubai, Greece, and the Club Med Euro countries for months. Don't follow the puck--anticipate where it's headed. See the objects in the waters ahead in the UK, Japan, and the US for what they are: icebergs, not lifeboats.

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/4/29_Out_Of_Currencies_And_Into_Gold.html

Eric King: This statement from Alex Barrett says it all, “Gold in Euros is at record highs and I think that people not just in Europe but across the world are losing faith in a lot of the fiat currencies and are actually heading towards real assets.” This is exactly the kind of thing you would expect to see in phase II of this secular bull market in gold. Big money flows into hard assets including gold and silver and also more institutional involvement. Contrarians may worry that gold is getting on more investors radar screens but this is simply the nature of bull markets.

Phase II of secular bull markets are longer than phase I so it will most likely go on for years before the manic phase III begins. Alex Barrett also remarked about the flow of funds, “...and that’s going to continue until we see this loose monetary policy start to get tightened up, so until then just keep investing.” Well there you are, we do not expect tight monetary policy just jawboning so the flow of money into both gold and silver should continue and accelerate for years which is supportive of a long phase II leading into the final crescendo of phase III.

If you understand the 3 stages of a secular bull market it makes it much easier to hold on during the reactions or shakeouts. Seasoned investors always look to accumulate during major corrections inside of secular bull markets because the wind is at their backs longer-term. For those who have a hard time buying during the major drawdowns they can simply use James Turks advice which is to dollar cost average by making purchases each month. This is sound advice from James and it helps remove emotion for some investors. The most effective way to make money in bull markets is simply to buy and hold, this is a fact but it requires tremendous patience.

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Disclosure: long gold and silver, long mining shares.