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If you have been watching gold and silver prices in horror these past few days, relax and take a deep breath. Then buy while the buying’s good.

August 24, 2011 – If you have been watching gold and silver prices in horror these past few days, relax and take a deep breath. Then buy while the buying’s good.

If you look closely at the charts one thing becomes abundantly clear – it’s only the American exchange that’s tumbling. Traders here are betting that global prices are set to hit the skids. But why? Does anyone in their right mind truly believe that happy days will soon be here again?

That possibility is so remote as not to exist at all, at least for most of us poor schmucks. But then, very few everyday Americans believe that what they think counts any more. My guess is that the fat cats are convinced that Bernanke Claus has hitched up his team once again and will soon be stuffing their stockings with gobs of free cash. After all, they are in the market for the quick kill, not long term survival.

So let them drive down the price of gold and silver. We have seen where those are heading and it is extremely likely that whatever the Fed tries to pull will be so transparent that it won’t fool anybody. The mass media has had a major change of heart about how it reports the economy and all of that cannot be undone.

None-the-less, a hundred point reversal in the gold price is not unexpected. And neither is it anything to worry about. The trajectory is unquestionable, but today’s prices are bound to intimidate the timid. It will take some time for a lot of folks to get comfortable with the fact that a sea change is under way in the global monetary system, and until they finally accept the inevitable gold and silver prices are likely to be exceptionally volatile.

Unlike futures speculators, however, safe haven investors are hunkering down for the long haul while the world tries to sort through the mess left in the wake of failing western fiat money. For the time being it is impossible to fix a ceiling on either the gold or silver price, but it is safe to say that we aren’t even close to it yet. Whatever the current price may be, it will be higher not far down the road.

So the choice is yours. You can side with the gamblers down at NYMEX and bet the ranch that all this doom and gloom is just rabid paranoia. Or you can choose to see what the rest of the world sees and do what the rest of the world is doing – buy all the gold and silver you can while the ante is low.

Shannon King

Senior Staff Writer – GoldSilver.org

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