“This time around, you are not going to sell it, you’re going to spend it. Gold is going to reassert itself as currency. When it does you will know it is at its maximum value. That’s probably three to five years down the road (2014-2016). Weather it’s 8,000 or 4,000 or 20,000, you can’t forecast it because you don’t know what the central banks are going to do in terms of how badly they are going to debase the US Dollar”.
- James Turk, founder of GoldMoney.com
On the 27th of January 2011, I attended Cheviot’s Sound Money Conference (9 videos available). I flew in to The City, the belly of the beast, to listen to some of my favorite economists like James Turk of GoldMoney.com, Chris Powell of GATA.org, Hugo Salinas-Price of The Mexican Civic Association for Silver and David Morgan of Silver-investor.com. Also attending and participating during the last hour of panel debate were Max Keiser of the Keiser Report and Ben Davies of Hinde Capital. This was a Rivendel type gathering of both wise men seeing the future and men and dwarves debating over issues only wizards and elves can see beyond.
There is a lot to say about the content of the day in London, but you can see all of it for your selves and make your own conclusions. But to some it all up: The followers of Sound Money know what is going on. Very few have any clue what so ever – even those with degrees in economics since most of them are caught in a Keynsian perspective. What we have been saying now for years are slowly becoming main stream. If you do not own physical gold and silver, you own no liquidity that will stand the test of time.
I highly recommend David Morgans analysis of the silver market, as well as Hugo Salinas-Price excellent presentation on how to practically apply and re-instate silver as currency from a state level. We have much to learn here when we reorganize our local economies along side a collapsing fiat system.
A question I often get from people is “when do I sell my gold”? The question really expresses a state of mind embedded in the fiat system of paper. If you understand that the fiat system is dying and fading away like a withering weed for flowers to grow in its place, you become to understand that you will not sell your gold and silver this time: you will spend it. Fiat paper will one day buy you nothing. That is how James Turk summarized that debate in one sentence during the panel debate (26min into the debate), also quoted above.
In 2011 I see silver at at least 50 USD/Oz and gold approaching 1800 USD/Oz. Probably this is too low. Friends and I have discussed that what we see happening is transpiring much slower than we both anticipated, however I do feel 2011 will be the year when gold and silver becomes mainstream. If I am correct the above fiat price targets will be proven wrong on the low side. The silver market is extremely tight, now also in backwardation. This is huge. Physical metal is selling out all throughout the world driven by Chinese massive buying. A friend of mine trying to take advantage of lower VAT on silver told me that one German online silver dealer sold out one year of exporting quotas to Sweden in less than two weeks! If you don’t have any physical silver, get it now. More on the tightness of the market of silver here from Eric Sprott and daughter.
I haven’t written anything here in a long time, but really there is nothing to say except repeat what we already know. Accumulate as much metal as you can during the coming weeks and months. This time, before the Spring Equinox, I feel it will be the last time we see gold below 1400 USD/Oz and silver below 31 USD/Oz. If you have fiat money you can afford to lose, I can certainly give you recommendations in the Casino Matrix of Stocks and Derivatives. However, that is not recommended if you value good sleep. 
Contact me if you need advice and consulting on how to manage your portfolio for 2011. James Turk makes an excellent point in his presentation on how to look at gold and silver in your portfolio.
