BIG RALLY IS COMING IN GOLD By Shan Saeed

GOLD IS LIKE YOUR WEALTH INSURANCE. 

The Double-Whammy for Gold

All along, the real issue has been the very survival of the European Union. Every time Ms. Merkel dug in her fashionable heels to oppose the cash flow needs of Spain, or Italy, or Greece, it raised the stakes that the EU could fall apart. And to be fair, Greece's repeated failure to hit budget targets had the same result.

But now, at the very least, we are seeing a commitment to the survival of the EU. And that means the euro can, and will, rally against the U.S. dollar. And the relative strength of the dollar has been the key to gold prices.

If you analyze the 1-year chart of the U.S. dollar vs. the euro, the dollar has steadily climbed in value against the euro. And as you might expect, while the dollar rallies, gold has steadily declined. Now that the survival of the EU is more likely, the U.S. dollar won't be as vital as a safe haven. You can expect to see money come out of U.S. Treasury bonds. You can expect oil to rally. You can expect to see the euro move back above $1.30.

But the biggest move is likely to come from GOLD. Because not only is there now less risk in the global economy, there will also be more cash flying around. That will lead to an overall weakening of currency and a very high probability of inflation. Inflation and a falling U.S. dollar: that's the formula for new highs from gold.

New Highs for Gold are coming:

Gold is on the verge of running above $1,600 an ounce. That is a critical level. Because once the $1,600 price level falls, I expect all time highs for gold. This is going to happen. The time to buy is right now.

You could buy gold coins. You could buy shares in the Gold Trust SPDR (NYSE: GLD). But the very best way to profit from the next leg of the gold bull market is to buy into some junior gold miners.  The junior gold miners have been absolutely crushed over the last year. You can pick up shares of companies that control billions of dollars worth of gold for ridiculously low prices.

I'm talking about prices as low as 50 cents a share! It will be pretty tough to go wrong with an entry price like that. And your upside from here is tremendous.  Mark my words: GOLD RALLIES BIG.