Dear Friends,
Once again I am read this week important newsletter.
Last week in my newsletter I mentioned that any time from 12th or 13th February the Dollar would start gaining especially against the South African Rand, the Euro as well as the Pound. I predicted the price on the higher side 418 for gold when it was trading around 417. A friend told me that some rumours came and that brought down the gold price and forced it to close at $409. Let us see what this week is indicating for the world financial markets.
First, predictions for this week from 16th to 20th
Gold
I am predicting something very important, that this is the final week when gold will be on the down bottom level of $409 for 2004. An upward journey will then start towards the end of this week or in next week. This will be the right week to accumulate gold as well as gold stocks. I am therefore certain that next week you will receive an exciting newsletter from me concerning gold.
Silver
Gold may stay quiet or on the awkward side but silver will make a very strong gain during this week and the downside support level will be $6.50 or any negative rumours that circulate in the market against the metal can make it to touch $6.43 but this will be a great opportunity for buyer. Please hold your investment in silver and even at this price, you have a great opportunity to buy the metal and its stocks.
I am sure that time has come for silver to cross $7 soon, which I expect next week. Please wait for my newsletter and I will update you.
Platinum and Palladium
Both metals still look very strong for this week because Venus is behind their rise. Please hold your positions in both these metals. Even if someone was to ask me to make investments in them, I would say yes without even reading the chart or considering any other fundamentals.
Currencies
This is the first time that I will recommend to buy the dollar for the short term against the Euro, Rand, Swiss Franc, Canadian Dollar and the Pound on Wednesday. Many in the investor community are aware that I have been very negative on the dollar for the last two years. I still hold the same position because in the long term, I see a negative trend for the dollar.
This week, the dollar will gain very strongly and those who are in short positions in dollar should cover up. In fact, you should sell other currencies against the dollar. We would like to flow with the waves of nature and the power of the planets.
Oil and natural gas
Both are looking strong, especially natural gas. On Monday it will form a base on the lower side, and I see it moving up from there for quite a long period.
Stock Markets
The world’s stock markets will remain very volatile during this week. Many investors will be very confused whether to buy or sell. If you recall my newsletter three weeks back, I said that I saw a major downward trend starting between 23rd February and 20th March. It will be very interesting to watch the stock market form next week. Those who do not want to take risks should sell their blue chip stocks this week.
Note: In this newsletter, you may feel a small conflict as I am predicting a rise in the dollar against other currencies while at the same time anticipating stable metal prices. When the dollar rises, metal investors feel very uncomfortable. I have spoken in details concerning this point in my book to the effect that the dollar and metals relationship will break in early 2004. This is the first time that we will see this happening. If you have any questions please send me an email and I shall be happy to respond.
For next three days I will be in South Africa.
Thanks and God Bless,
Mahendra