More On Gold

As a follow up to my latest blog on the gold market, I want to share with you an excerpt from one of the brightest minds in the business and an online affiliate to PinnacleDigest.com, Mark Leibovit. If I could recommend only one market commentator to you all, Mark would be it. We share similar opinions on gold, although he may be a little more bullish on the precious metal than I.

Mark is the Chief Market Strategist for VRTrader.Com. His technical expertise is in overall market timing and stock selection based upon his proprietary VOLUME REVERSAL (tm) methodology and Annual Forecast Model.

His Annual Forecast Model (available at VRTrader.com) has gained increasing notoriety on Wall Street as a predictor of future market movement. Released each year in early February, it has accurately pinpointed market highs and lows. It's claim to fame began back in 1987 when it predicted the ominous stock market crash nine months in advance. It also forecast the 2000 bear market - the report released February 1, 2000 entitled: 'It Looks Like An Honest to Goodness Bear Market'.

From Mark Leibovit's VRtrader.com Platinum Newsletter - June 2, 2009

"My intermediate target for Gold is 1200 and my big picture target (possibly within the next two years) is for 3000. We could go even higher, but if we think in terms of a 20-year up cycle, i.e., into 2020 there is plenty of time to see this unfold and I'm sure we're going to have to trade it (both long and short) along the way. With gold currently just above 950, it would be nice to see gold stay there and make an assault at the 1000 level and the recent high of 1007.7 and the old high of 1037. My view is that 1000 will become the new FLOOR for Gold just as 1000 became the new FLOOR for the Dow Industrials when it broke through to the upside back in 1982.

The contrary view here holds that deflationary forces will overpower inflationary forces and Gold will FIRST decline. That may be true, but the lessons of the 1930s show that gold-mining shares may show extraordinary gains in such a period. For example, between 1930 and 1935 Homestake Mining rallied from $80 to