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<p>[QUOTE=&quot;princeofwaldo, post: 1410185, member: 24091&quot;]Seems the past few major gold price drops have all had similar circumstances. Gold approaching $1700 or $1800 an ounce, and showing very bullish action, followed by Ben Bernanke running off his mouth almost deliberately intending to knock the price back down. </p><p><br /></p><p>As best I can tell, the economy isn&#039;t much better off today than it was in the fall of 2008. To be sure there has been some very modest improvement in business conditions, but hardly any improvement in median income for anyone else. Yet the stock market has had a huge rally, and while gold has not performed as well, it has still held-up remarkably well. Enter Ben Bernanke to entertain the market makers by saying things like there isn&#039;t going to be a QE3. This is said to deliberately knock gold prices down. (Bernanke&#039;s greatest fear being a world where gold rules instead of central bankers). Stocks then go lower, gold goes much lower, and almost perversely, bonds go higher. A few days later, stocks bounce back strongly, bonds soften up a little bit, and gold makes some modest gains in price. And that seems to be the current holding pattern, though it won&#039;t last forever.</p><p><br /></p><p>Here is what I expect to see happen. There are millions, maybe tens of millions, of workers who thought they would be retired by now. There are only two things keeping them in the work-force. A.) Their retirement investments in the form of 401-k plans (most of which lack any method of investing in precious metals) have been mercilessly hammered since 2008 and they feel they can no longer afford to retire. B.) With no viable solution to healthcare expense exposures both for themselves and often times their younger spouse, potentially, retirement is a roulete wheel of catastophe in the event they retire prior to Medicare eligibility and get sick. However, both of these situations could change dramatically over the next few years. </p><p><br /></p><p>If the healthcare reform package already passed is struck down by the supreme court, and then replaced with a single payer system, -with the eligibility age of Medicare being reduced to the day you are born in a law that isn&#039;t 2700 pages long, but instead is about 3 sentences long, coupled with a continued recovery in stock prices...,,, Well, there will be so many people retiring that the unemployment rate will plunge. Has anyone considered what will happen to precious metals prices in such a scenario? (a very likely scenario I might add!)</p><p><br /></p><p>I don&#039;t think its out of the question to see unemployment drop by 3.5 % in a single quarter while the workforce shrinks nearly as much. In such an environment, inflation could easily hit the double digits in very short order. And that, my friends, is when the metals will make their real move into the stratosphere!! Any guess how high it will go?[/QUOTE]</p><p><br /></p>

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