A Few Things Need to Happen
Before Gold Rallies*by Larry
Edelson<http://www.gliq.com/cgi-bin/[email protected]+++2+2831009++E-Acquisition
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Dear Subscriber,
[image: Larry Edelson]

A lot of investors want to know why I am not screaming from the rooftops,
"Buy gold!"

The reason is simple: I am not 100 percent confident that the bottom is in.

Why is that, especially when all is not well with the world?

After all, in addition to the Syrian crisis, *which is not over*, tensions
are rising dramatically between the United States and Russia.

North Korea is reactivating its plutonium reactor. The Fed, even if it
tapers its bond buying this week, is still printing oodles of money. The
budget ceiling war is about to go into overdrive and heated debate again.
[image: It's not yet time for gold to take off.]It's not yet time for gold
to take off.

And interest rates are rising, a sure-fire sign that inflation will be
coming back.

My answer is simple: It's not yet time for gold and silver to take off to
the upside. Quite the contrary, they have more work to do on the downside.

Look, every market has its time and place in the sun. That's why timing is
so critically important. You can be 100 percent right on the direction of a
market, but you will not make money if you don't get your timing right.

*The pause in gold and silver's long-term*
*bull markets is not yet over.*

In contrast to important tops in any market, important bottoms take time to
complete. That's especially true with the precious metals.
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version<http://www.gliq.com/cgi-bin/[email protected]+++2+2831009++E-Acquisition
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Gold and silver have backing and filling to do. They have a lot of
investors they still need to chew up and spit out. *They will not bottom
until most investors have turned outright bearish on them.*

That's one of the reasons why gold and silver took a nice nose-dive last
week, precisely in accordance with what my cycle work was telling me. You
can see the forecasted decline in this chart I've shown you previously.

And according to all of my indicators, as I have mentioned before, gold and
silver needed a one- to three-year correction from their 2011 highs.

So far, we have a two-year correction in place. And so far, gold, which is
my barometer for both metals, has fallen to as low as $1,178.

But importantly, that low did not precisely hit long-term support levels,
which stood a bit lower at the $1,150 level.

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For a market to bottom, it must hit long-term support at the right time.
When price and time converge together, you have an important bottom. And
though gold came very close to doing that in June, it was not close enough.

*There are two more cyclical time*
*targets for a bottom in gold.*

One is this month, shown by the cyclical chart above. If gold can break the
June $1,178 low by October 3, at the latest, I will be screaming from the
rooftops that the bottom is in place.

But if gold does not break the $1,178 low by October 3, *we're not likely
to see the bottoming process in the precious metals end until January of
next year.*

That's the next major cyclical target for a low in the precious metals --
January 2014.

So there are three scenarios ahead for gold (and silver):

*Scenario #1:* Gold declines to below $1,178 by October 3. If so, the
bottom will be in place.

*Scenario #2:* Gold declines but does not break $1,178 by October 3. Then
expect a brief bounce but largely a sideways trading range for the precious
metals heading into year end.

And then, a sharp decline into January, with gold finally breaking the
$1,178 low and bottoming once and for all.

*Scenario #3: *Gold somehow miraculously explodes higher and closes above
$1,605.50. If gold were to do that -- at any time -- then we would have
confirmation that the June low at $1,178 will hold and was the final bottom.

This third scenario is extremely unlikely. Far more likely is that we will
see a major new low in gold either by October 3, or by the end of January.

And then, both gold and silver will be off to the races. No matter what, I
do not see gold's bear market extending beyond January 2014.

This should not surprise you. I have said all along that gold's pause could
take up to three years.

As to mining shares, as long as they hold their August lows, there is a
very high possibility that mining shares have already bottomed, way in
advance of gold

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