As someone who was bearish on gold stocks for some time I find it amusing to see the latest gurus showing the death of the gold market. While many ignored my warnings that I thought seemed obvious I am sure many will ignore the exact opposite today.

The market has changed. Did you all miss that over the past several weeks? The US government has said no more. There will be no more bankruptcies. The trillion dollar exposure to GM CDS might as well go to zero. It will not be allowed to fail. The banking system was nationalized. It will not fail. The market has a few days left to settle some debts and it is then over. The government did not blink, it threw up in fear and is now overdosing on medication.

The cost of production is eight hundred dollars plus in the gold market and sixteen or so in silver. The bullion banks have run out of supply. Gold must rise, it must, or the market will get out of hand.

So if you listen to the experts they will tell you demand for gold jewelry will fall. Gold jewelry translated means India will no longer buy gold. They have bot for thousands of years so I am sure they will stop buying now.

No, from this investors eyes it could not be more clear, gold will rise and the gold stocks will embark on a rally that will shock most. It will be the go to asset as most other markets churn in a sea of indecision.