GOLD BREAKS OUT

For several months, we have forecast that gold prices would have to solidify over $1,740 per ounce before climbing above $2,000.

Today, gold closed $1,796.80 an ounce, its highest level since November 2011.

Of course, there will be pull backs, however, we maintain our forecast since there will be sharp declines in the overvalued equity markets despite the monetary injections to keep them artificially pumped up.

Gold prices, up 18 percent this year, will also rise as central banks and governments across the globe devalue their currencies with unprecedented money pumping schemes in attempts to keep their economies from crashing into depression.

As currencies lose value and inflation accelerates, both gold and silver will be the primary safe haven assets.