Happy New Year!  This has been one of the most interesting years in my 25 years in the Financial services industry.  I delayed publishing this week’s comments because I wanted to crunch the numbers for 2008 before we put forth a strategy for 2009 and beyond.  Gold, although higher earlier in the year, still managed to notch a 5.5% return in 2008.  We managed to do significantly better because we take both long AND short positions as the trends change.  But make no mistake.  The long-term bull trend in GOLD is intact!  I happen to believe that the next 24 months could bring new all-time highs in Gold as the fragile financial system fails to respond to massive injections of cash via the unprecedented government bailouts that have been proposed.  This will lead to new lows in the Dollar, a continued decline in consumer confidence, a deep and prolonged recession (or Depression) and a major rally in Gold as the focus moves swiftly to stores of value that stocks and bonds can not provide.

I’ve been criticized in the past for my writing style regarding the markets.  Some believe that I should try to be more “entertaining” when I try to explain the way markets move from a technical perspective.  Let me say this right up front.  I’m not interested in entertainment.  If I want entertainment I go to Vegas.  When it comes to the markets I’m only interested in one thing-  Making money!  Unless you are familiar with my work and my track record you may find it difficult to develop and execute a trading plan based solely on my opinion in this blog.  As a matter of fact, the development and implementation of a trading plan is the toughest thing for most investors to do and even more difficult for the novice trader.  On November 13th when Gold futures were trading just south of $700, I stated in a story on Marketwatch.com that I expected Gold to rally back to the $900 mark.  On Monday, FEB Gold futures hit $892.00.  Now, you might be inclined to say that I missed the mark.  And, you’d be right.  All I know is that I came close enough to my mark to bank some serious profits as Gold rallied to the close of 2008.  And that, my friends, is what trend following is all about.  The major trend in Gold is UP and this next leg up may be the most impressive.  So, take a portion of your investable dollars and invest it in Precious metals.  If I’m right, you’ll be smiling at this time next year.

I will add an additional segment to this blog after the close tomorrow as we look at charts on Platinum and Palladium and explore the profit potential of these markets as well.

I wish you all the best in 2009!

Dale F. Doelling, Chief Market Analyst

The information and comments contained herein are provided by Secure Future Financial Corporation
(”SFF-CORP”) and NOT Castello Cities Internet Network, Incorporated. Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. This report includes information from sources believed to be reliable and accurate as of the date of this publication, but no independent verification has been made and we do not guarantee its accuracy or completeness. Any reproduction or retransmission of this report without the express written consent of Secure Future Financial Corporation is strictly prohibited. Again, the information and comments contained herein is provided by SFF-CORP and in no way should be construed to be information provided by Castello Cities Internet Network, Inc. Copyright © Secure Future Financial Corporation.

Hello!  I’m Dale Doelling and this is my first post on the Bullion.com blog.  I’ll be providing market updates to the Bullion.com blog every Tuesday evening so, if you have any questions or comments, you can post them here or send me an email at Dale@DaleDoelling.com

Before I talk about what may lie ahead for the markets I’d like to recap what has happened over the last 12 months.  During 2008, we saw record highs in Gold and Platinum but Silver lagged behind the entire year.  Let’s look at a weekly OHLC chart for Gold and Silver and see if anything stands out.

Weekly Gold

As we can see in the chart above, Gold has traced out a very nice 5-wave decline from the March high to the October low.  On November 13th, the December futures were trading just below the $700 mark and, in the Metals report on Marketwatch.com, I stated that I was expecting a rally in Gold to at least $900.  It took just 8 trading sessions for the market to rally to an intraday high of $833.50.  The February futures hit an intraday high of $883.60 on 12/17.  Although the market has pulled back a bit, mostly due to Dollar strength and weakness in Oil, I still feel there’s at least a 70% chance of the Feb contract eclipsing the $900 mark before the end of the year.

Silver has been a disappointment as it retraced nearly 60% from its July high to its low in October.  But, just when it looked like there would be no bottom, Silver found support and has now made a very nice rounded bottom on the weekly chart and could challenge initial resistance at around $11.00 in the first quarter of 2009 and possible eclipse major resistance at around the $12.35-12.50 area.  Consecutive closes above that level could propel the Silver market right back to the 2008 highs in a hurry.

Weekly Silver

I believe that the Precious metals group will be the #1 asset class based on performance for the next 24-48 month period.  I base that on my assessment of the Dollar, which I believe may have already begun its next big leg to the downside.  I also continue to believe that the length of time that it is going to take for our economy to recover is being prolonged by the actions of our Federal government to the detriment of the working class in this country and this may eventually lead to some form of Martial law in this country as more and more people are forced on to the streets.  Our economy is about to enter a new phase that I believe will be the worst period that this country has ever experienced.  I talked about this over 3 years ago in my interview with Jon Nones at ResourceInvestor.com and everything that I said then, i.e., a falling stock market, the real estate market crash, and the Debt crisis that is being exacerbated by our government every day, has come to fruition.  I will continue to monitor the crisis and report back to you, our readers, every Tuesday evening.  We will be scheduling Webinars for Precious metals investors and we’ll be looking at the opportunities in Gold, Silver, Platinum and Palladium as they present themselves.  I look forward to helping you in achieving your financial goals in the coming year.  It should be interesting!

In closing, I would like to say how elated I am to be associated with Bullion.com.  I believe that during the coming year you will find what you are looking for regarding the Precious metals markets and you’ll invite your friends to subscribe to our newsletter. I welcome your comments and questions and I will try to answer as many of your emails as time permits.

Good trading,

Dale F. Doelling
DaleDoelling.com

DISCLAIMER

The information and comments contained herein are provided by Secure Future Financial Corporation
(”SFF-CORP”) and NOT Castello Cities Internet Network, Incorporated. Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. This report includes information from sources believed to be reliable and accurate as of the date of this publication, but no independent verification has been made and we do not guarantee its accuracy or completeness. Any reproduction or retransmission of this report without the express written consent of Secure Future Financial Corporation is strictly prohibited. Again, the information and comments contained herein is provided by SFF-CORP and in no way should be construed to be information provided by Castello Cities Internet Network, Inc. Copyright © Secure Future Financial Corporation.