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Gold has hovered between $1,330 and $1,346 so far today…as of 8:50 am Pacific, the yellow metal is unchanged at $1,339…Silver is up 35 cents to $25.78 while the U.S. Dollar Index, which is technically in overbought territory, has declined nearly one-quarter of a point to 78.98…what’s interesting and encouraging about the correction in Gold and commodities in general in recent days (Gold plunged by about $100 an ounce in 5 sessions) is that the CDNX has not fallen more than Gold has…each declined about 7 to 8 per cent…if a much deeper correction were coming in Gold, the CDNX would be leading the way to the downside and that just hasn’t happened…this morning, the CDNX is bouncing back strongly and is up 26 points to 1949…yesterday it fell within 2 points of the very strong support level we identified at 1900…U.S. consumer prices rose moderately in October (0.2%) but there are still little signs of inflation as the cost of autos, clothing and hotels actually fell…excluding the volatile food and energy categories, the core consumer index was unchanged for the 3rd straight month…in the past year, the core index has risen by only 0.6%, the smallest increase since the index began in 1957…this bodes well for the Fed keeping its pedal to the metal in an effort to rekindle inflation…that also means a lower U.S. Dollar which in turn should translate into higher Gold and commodity prices…Gold Bullion Development (GBB, TSX-V) is up a penny to 63 cents as investors await fresh assay results from the LONG Bars Zone, promised by GBB sometime this week which means either later today, tomorrow or Friday…Granada has consistently delivered good results all year long and there’s no reason to believe that’s about to change…a company that reminds us a lot of GBB when we first discovered Gold Bullion around this time last year is Currie Rose Resources (CUI, TSX-V)…CUI has doubled in value since we initially brought it to our readers’ attention in September…it has strong technical support at 21 cents, where it’s currently trading, and a drill program is well underway at its promising Sisu River Gold Property in northwest Tanzania…we are also very intrigued with Currie Rose’s Sekenke Project, about 200 kilometres southeast of Sisu River and the Mabale Hills Project…the Sekenke Project surrounds 2 former producing mines from the first half of the 20th century and a strong geological argument can be made that Currie Rose is sitting on even more prospective ground than what exists at these 2 former mines…elsewhere in the BMR stable, Colombian Mines (CMJ, TSX-V) woke up this morning and ran up to 92 cents…it has since backed off to 86 cents which is a 9-cent increase over yesterday…CMJ came out with news this morning regarding its 9,300 hectare El Dovio Project in Colombia…recent channel sample results have extended high grade gold-silver-copper mineralization over a much larger width than indicated by historic information at El Dovio…all samples returned significant polymetallic mineralization…6 samples contained Gold in excess of 10 grams per tonne, with individual 2-meter channel samples assaying up to 25.55 g/t Au, 66.88 g/t Ag and 13.5 per cent copper…this helps underscore the quality of CMJ’s large Colombian property package…its flagship property is Yarumalito where drilling continues…CMJ faces strong technical resistance at 95 cents, so a move through 95 would signal a major new uptrend in the stock…also in Colombia of course is Seafield Resources (SFF, TSX-V) which has taken a bit of beating recently…SFF is up 2 pennies this morning to 19.5 cents…we can’t help but think there should be news soon from Seafield regarding drilling results from Miraflores and drilling plans for Dos Quebradas…Richfield Ventures (RVC, TSX-V), which has very strong technical support around $3, is up a nickel to exactly $3…

John: Over the last 3 trading sessions we’ve seen Gold plummet from $1,416 to as low as $1,330 at a time when global markets have been in some turmoil. There are numerous concerns including the debt situations of Ireland, Portugal and Greece, the raising of interest rates in South Korea, the threat of more monetary tightening in China to curb inflation, and the increase in the relative value of the U.S. Dollar.   All have had an impact on the price of the yellow metal.   Today, Gold (continuous contract) opened at $1,361, rose to its high of $1,365, then fell to a low of $1,330 before recovering to close at $1,339 for a loss of $21.50 (-1.58%).  What’s the Gold chart telling us right now?

Looking at the 6-month daily chart, we see that in the last 3 days Gold has lost $75 an ounce and today’s low bounced off the SMA(50) moving average which is providing bullish support. Also shown is a divergence between the RSI and the price (mauve converging lines) which gave a warning that a decline was imminent. The horizontal blue line is a resistance level at $1,340. This was support until it was penetrated today. The new support level is at $1,320.

Looking at the indicators:

The RSI has crossed below 50% to 45% and sits on the RSI support level (orange horizontal line).  The Slow Stochastics shows the %K (black line) at 34% and the %D (red line) at 54% – both are falling fast and there is more room to fall further before becoming oversold.

The StochRSI indicator, based on Stochastics applied to RSI and not price, is more sensitive than the RSI and often used to identify reversals. On the chart are 3 thin vertical lines  indicating when the StochRSI crosses above the 20% level and the Gold price reverses to the upside. At the moment the StochRSI value is 0.00, so when it crosses up over the 20% level the Gold price will reverse.

Outlook: The worst of the decline appears to be over and Gold is currently trading in an area of support.  We can expect some softness in the price to continue for the immediate future but the chart patterns and indicators show the support is strong at $1,320.    I expect this support to hold, followed by a fresh and potentially very powerful advance to begin well before year-end.   Sudden and sharp drops such as this can be expected occasionally, and are indeed necessary, in an ongoing major bull market.

Gold is weak again today and has traded between $1,339 and $1,366…as of 8:00 am Pacific, the yellow metal is down $20 an ounce to $1,340…Silver is off 31 cents to $25.22 while the U.S. Dollar Index has moved higher to 78.95…U.S. core producer prices unexpectedly fell in October to post their largest decline in more than 4 years…the PPI rose 0.4% in October, the same as September, but core PP (excluding volatile food/energy costs) fell 0.6% after rising 0.1% the previous month…this will certainly help keep the Fed on track in its “quantitative easing” efforts designed to rekindle inflation in the United States…China’s Shanghai Index was off 4% overnight after a 5% correction last Friday…these kinds of sell-offs can be a bit unsettling but are necessary in order to re-fuel the bull market…the same applies with the CDNX which is down sharply this morning, falling 54 points to 1928…as we’ve stated before, we see very strong technical support for the CDNX at 1900, the bottom end of the previous resistance band we identified between 1900 and 2000…if a 10% pullback were to occur from the November 9 high of 2070, the CDNX would actually drop to 1863 – slightly above the current 50-day SMA…our “big picture” outlook has not changed and what this pullback represents in our view is a “last chance” entry point under 2000 on the CDNX prior to the next major leg up in this bull market which should begin in earnest within a month or so…smart investors therefore will not be driven by fear but instead will embrace this weakness which amounts to an early Christmas gift…in the meantime some select stocks should perform very well and we believe we’re tracking a few of those…one of them is Gold Bullion Development (GBB, TSX-V) which came out with outstanding Phase 1 metallurgical results from Granada yesterday…GBB also says it expects to release additional assay results from the LONG Bars Zone sometime this week…now is when we could begin to see some of the holes that looked so attractive visually over the summer based on GENIVAR’s core descriptions in GBB news releases in July, August and September…GBB is off 2 pennies to 63 cents but technically the stock is looking much stronger and showing signs of a potential major move…we’re very bullish also on Currie Rose Resources (CUI, TSX-V) which is another company to keep a close eye on during this market weakness…CUI is off a penny to 21.5 cents…the company continues to drill its Sisu River Property at its Mabale Hills Project in northwest Tanzania, and we believe there’s a significant chance of a discovery there given the geological dynamics…CUI could become our next Gold Bullion…GoldQuest Mining (GQC, TSX-V) has released a 43-101 inferred resource estimate this morning for the La Escandalosa zone at its Las Tres Palmas Project in the Dominican Republic…the La Escandalosa zone remains open to both the north and the south with a current inferred resource of 4.9 million tonnes grading 2.60 g/t Au at a cut-off of 0.30 g/t Au…this implies 406,000 ounces, which was certainly in line with our expectations…the deposit is modelled as a flat-lying body and clearly offers major upside potential as this 43-101 has been done early in the game and is based on only 25 holes drilled between 2006 and 2010…everything is in place for additional drilling at Las Tres Palmas which is expected to commence in the near future (at the latest, our guess is January)…GoldQuest hit a high of 30 cents this morning but has since backed off on overall market weakness to 27.5 cents, down a penny…Sidon International (SD, TSX-V) is off half a penny at 9.5 cents after reporting some very encouraging sampling results yesterday from its Morogoro East Gold Property in east-central Tanzania…Sidon appears very much on track at Morogoro and we like what we see in the early stages of exploration there…we’ll be reporting more on Sidon and Morogoro in the near future…Richfield Ventures (RVC, TSX-V) has bounced off support at $3.00 and is currently up 6 cents to $3.13 while Greencastle Resources (VGN, TSX-V), which still needs to unwind an overbought condition, is down 2.5 cents to 23 cents…

Gold Bullion Development’s (GBB, TSX-V) Granada Gold Property in northwestern Quebec, 65 kilometres west of Osisko’s massive Canadian Malartic Deposit, has been a very significant exploration story since March of this year when Gold Bullion made a discovery of near-surface mineralization in Phase 1 Hole #17, several hundred metres east-northeast of the old Granada mine workings.  Since then, over 25,000 additional metres have been drilled at Granada in both the LONG Bars Zone Eastern Extension, where #17 is located, and Gold Bullion’s LONG Bars Zone Preliminary Block Model (immediately to the west of the Eastern Extension) where the company has outlined a potential non-compliant 2.4 to 2.6 million ounces.  A 50,000 metre Phase 3 drill program is now underway.  As regular BMR readers know, we’ve reported on this story intensely and we fervently believe Frank Basa’s team has a “golden” opportunity to discover another multi-million ounce open-pit deposit along Quebec’s famous Cadillac Trend.

Today, Gold Bullion reported outstanding metallurgical results from test samples taken from the Eastern Extension (recovery rates in excess of 93%), additional evidence that Granada may indeed have what it takes to develop into a large and robust open-pit operation.  A great deal of work needs to be done yet but with these kind of metallurgical results and some more holes like #55 reported just last week (116 metres grading 1.69 g/t Au over a wider interval of 356.6 metres of 0.60 g/t Au), Gold Bullion is definitely on the right track and appears to be gaining momentum.  The stock price stalled from mid-September to just recently, due to a financing and a lack of results because of assay lab back-ups, but the company says it now expects a regular flow of assays and interest in the play is once again heating up significantly.

Tonight, John examines a GBB chart that is looking more exciting now than it has for over 2 months:

John: Today, GBB opened at 62 cents, drifted down to its low of 60 cents, then climbed steadily and methodically to close at its high of 65 cents for a gain of a nickel (8.33%) on total CDNX volume of 1.3 million shares (278,000 on ALPHA).

Looking at the 6-month daily chart, we see that starting around mid-August  the trading pattern formed is a bullish ascending triangle with the top horizontal blue line at 65 cents being the resistance and the upsloping green line providing long-term support. Today’s trading finished right at the 65 cent resistance line, so we are looking for Tuesday’s trading to attempt to break above this level.  Two other resistance levels are shown – 1 at 70 cents, which is the pivotal level from a previous high in June, and the other at 79 cents which is the all-time high from early September.

This very bullish move today really began on Monday, November 8, where we see a small white candle. Since then all 5 trading sessions have closed above the daily SMA(50) moving average which provides close bullish support. Last Friday’s trading (red candle) can be ignored because all markets were hit hard by the bears.  The last 6 trading sessions have provided a strong base for a bullish move up. This is supported by increased daily volumes.

There are 2 sets of Fibonacci levels shown. The set to the left (in green) shows the next target is 97 cents (this is not a BMR price target, as we don’t give those, but a theoretical Fibonacci target).  The set on the right indicates that if the Fibonacci 97 cent target is reached, the expected Fibonacci retracements are 82 cents for a 38.2% retracement and 78 cents for a 50% retracement.

Note that the present resistance level shown is at 79 cents which is very close to the 50% retracement level, thus if the retracement gets to that level it will encounter very strong support. Remember, broken resistance becomes support.

The period from mid-September to now has been a time for consolidation and accumulation.

Looking at the indicators:

The RSI has bounced up off the 50% level and is now at 63% and pointing up. This has plenty of room to move higher without becoming overbought – very bullish.

The Slow Stochastics has the %K (black line) at 51% and above the %D (red line) at 49%.  It’s pointing up and also has plenty of room to move higher without becoming overbought – very bullish.

The Chaikin Money Flow (CMF) indicator shows the last 7 trading sessions had bullish buying pressure with today’s level the highest at 0.12 – very bullish.

Outlook: Today, GBB made a convincing move up without being excessive. There is a strong base with the indicators and trading patterns suggesting real potential for a serious near-term acceleration to the upside.

Welcome to our site, or at least a sneak preview of it!  The final version may look much different than this as we continue to develop a very unique investment and money-management resource site.  An important component of this site is original research on small and undiscovered junior resource companies, mostly in the gold exploration space, that offer very real and significant upside potential. We are extremely selective in the companies we feature and put forward to investors – we prefer quality over quantity.

We use a combination of fundamental and technical factors in determining the value and potential of a stock.  In terms of fundamentals we look for a company with a superb project supported by strong management.  Management must possess integrity, solid ethics and a determination to succeed and build shareholder value.

At BullMarketRun (BMR) we approach the handling of money from a biblical perspective and this is an important topic we will be sharing with our readers (and listeners) as the site continues to develop.

Disclaimer:

BullMarketRun.com is completely independent from any companies it covers.  BMR accepts no compensation of any kind from any groups, individuals or corporations for coverage of any company mentioned on this site.  We accept no advertising either.  Our stock coverage is for informational purposes only and must not be viewed or interpreted as “buy”, “sell” or “hold” recommendations. No investment opinion or other advice is being rendered on any stock or company.  We strongly recommend that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, and do your own due diligence and research before making any investment decisions.  The stocks we cover, by definition, are highly speculative and potentially very volatile.  Investors are cautioned that they may lose all or a portion of their investment if they make a purchase or short sale in these speculative stocks.  We are not Registered Securities Advisors. Our opinions can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.  It should be assumed that BMR personnel, writers and their associates may hold or dispose of or trade in positions in any securities mentioned herein at any time.  Owner/Publisher of BullMarketRun.com is Terry Dyer of Langley, British Columbia.

This past summer, based on technical patterns we were seeing in the CDNX and Gold, BMR pointed out the strong possibility that the CDNX could at least double in value from its July low of 1343 to around 2700 by late winter or early spring of next year, essentially duplicating what the Nasdaq did between the summer of 1999 and March of 2000.  We’re not suggesting the CDNX is in a dot com-style  “bubble” right now because that just isn’t the case.  We just wanted our readers to start thinking “BIG” because of the near-term potential we were seeing with the CDNX.

Indeed it appears increasingly evident that the CDNX is about to pull off a 1999-2000 Nasdaq-style move within a nine-month period.  At the moment the CDNX is underpinned by rock-solid technical support between 1900 and 2000, and a move to 2700 from current levels by the end of March represents another major advance of 35% in just four-and-a-half months.  One can also not rule out new all-time highs in the CDNX by sometime in 2011  – all things are possible as this Commodities Super Cycle intensifies.  The Perfect Storm is in place.  Below, John compares the current CDNX with the Nasdaq boom of 1999-2000 in more detail:

John: In July we compared the CDNX chart for 2004 with the CDNX chart for 2010 and found that the 2010 chart was basically a repeat of the 2004 chart. We were not surprised by this as Technical Analysis is based on the premise that chart patterns are repetitive. Today we are going to compare the Nasdaq chart for the period of August, 1999, to May, 2000, with the CDNX from mid-May of this year to the present.   Hopefully this will give us additional insight into the intermediate term trading patterns of the CDNX.   First let us look at the 9 month NASDAQ chart:

We start at the low at 2500 during the 2nd week of August, 1999, and over a period of 2 months the Index climbed to nearly the 3000 level at which point it retraced to 2700.   These 2 moves are noted on the chart as #1 and #2 respectively. Then from mid-October to the 3rd week in January, 2000,  there was a steady climb to about the 4400 level. This is noted as #3 on the chart. Then the Index retraced to 3800 until the beginning of February from where it climbed to 5100 during the 2nd week of March. These moves are noted as #4 and #5 respectively. The result is that from the 2nd week of August, 1999, to the 2nd week of March, 2000, a period of 7 months, the Nasdaq gained over 100%. As we have shown on the chart this move was made in 5 waves (orange) in accordance with Elliott Wave Theory which states that every Motive Phase, bullish or bearish, consists of 5 distinct waves and if the Primary trend is still in place it will be followed by a 3 wave Corrective Phase (shown in blue).

Now let’s took a look at the CDNX:

Looking at the 6-month daily CDNX chart for the period from mid-June, 2010, to mid-November, we see that the low for this period occurred during the 1st week of July at 1343 and then the Index proceeded to climb to a high of approximately 1480 on August  23rd.  From there a small retracement occurred down to 1440 on September 1.   These 2 waves are noted as #1 and #2 respectively.  The chart shows the trading to this point was in a horizontal trend channel.

During the first week of September the Index broke out of this channel to the upside and has continued to climb to the present time. This last move is noted as wave #3. This wave has been in effect for nearly 3 months and there is no clear indication that this is the end. In the case of the Nasdaq, wave #3  lasted for approximately 3.5 months before the start of wave #4.

In Elliott Wave Theory, wave#3 is never the shortest wave and often is the longest.

Outlook:  We can clearly see that the CDNX is following the Nasdaq chart quite closely and is definitely in a 5-wave Bullish Motive Phase. If the CDNX time factor to the end of wave #5 equals that of the Nasdaq chart, we could see the end of wave #5 sometime in February, 2011.  But with the strength presently being displayed by the CDNX, this Motive Phase could easily be extended into March or beyond. We will see.

Gold is quieter today after a drop of $40 an ounce Friday…as of 8:15 am Pacific, the yellow metal is up $4 an ounce to $1,373…it has traded in a range of $1,359 to $1,376 so far today…Silver is up 33 cents to $26.37 while the U.S. Dollar Index has strengthened to 78.52, overcoming some resistance at the 78 level…there is still major resistance between 79 and 80 on the U.S. Dollar Index, so bulls have a lot of heavy lifting to do – the bears are still in control…U.S. retail sales rose more than expected in October, posting their largest gain (1.2%) in 7 months…this was the 4th consecutive monthly increase in retail sales…China’s Shanghai Composite Index recovered today after posting its biggest percentage loss in 14 months Friday amid talk of further central bank tightening…Friday’s 5% correction was a healthy pullback in an ongoing bull market in China…the CDNX is down 12 points at 1995…the previous resistance band we identified (1900 – 2000) will provide tremendous support for the CDNX prior to the next major leg up…later today we’ll be taking a look at the current CDNX in comparison to the Nasdaq’s 7-month run from the summer of 2009 to mid-March, 2000…Gold Bullion Development (GBB, TSX-V) has come out with more news this morning and it’s very encouraging and significant…this project is much more advanced than some investors realize…GBB has reported high recovery rates, in excess of 93%, from Granada metallurgical test work performed by Gekko Systems in Australia…the combined gravity-flotation Gold recoveries in 2 separate tests were 93.9% and 97.2% at grind of 100% passing 150 microns…test samples were taken from Phase 1 drill core from 3 holes last spring that penetrated the Gold bearing structures in the LONG Bars Zone Eastern Extension…the composite samples were free of any high grade intercepts with the assayed and calculated head grade ranging between 0.45 – 0.60 g/t Au (lower than the assayed hole grades because of the removal of the high grade intercepts)…what this means, in simple language, is that the ore at Granada appears to be very clean which is excellent news for the potential economics of this project…a high recovery rate means more Gold can be extracted economically…this is consistent with the company’s bulk sample in 2007 and historical reports from Granada…the recovery rates that Gekko came up with are extremely high, especially for a lower grade deposit and even higher than the recoveries Osisko has reported from metallurgical tests for its Canadian Malartic Deposit…the potential economics of Granada could indeed be very robust…Gold Bullion also stated this morning it expects to release additional assay results from the LONG Bars Zone later this week…GBB is up 4 pennies as of 8:15 am Pacific to 64 cents…a new uptrend with GBB appears to be gaining momentum…Currie Rose Resources (CUI, TSX-V) is unchanged at 23 cents…our guess is that after 3 weeks, drilling at CUI’s Sisu River Property in Tanzania should be approaching the midway mark of the 3,000 metre Phase 1 program…the company is using a lab just a short distance from its Mabale Hills Project, so initial results may not be far off…Currie Rose is drilling into a highly prospective target and we can’t help but think the odds of some sort of discovery are significant…we like how Sidon International (SD, TSX-V) seems to have bottomed out around a dime…patient investors should be rewarded here…the lack of news from Sidon recently has not meant a lack of activity at the company’s Morogoro East Property in Tanzania…SD is currently up half a penny at 10.5 cents…Richfield Ventures (RVC, TSX-V) is off 17 cents this morning to $3.02 but the stock has very strong technical support at $3.00….

Editor’s Note:  We are posting the following article, with permission, that Money and Markets (a free daily investment newsletter that we recommend) published over the weekend that we believe BMR readers will find interesting:

By Sean Brodrick:

Let me ask you this: Is gold a bargain at $1,400 an ounce? Is crude oil a screaming deal at $85 a barrel?

Absolutely!

In fact, I think the prices of many commodities such as gold, crude oil, wheat, soybeans, copper and silver will continue to climb over the next year … and will be much higher just 18 months from now.

Today, I’ll tell you why that is. And why, even if you’re only starting to invest in commodities right now, you could make a heck of a lot of money going forward.

After All, A New Commodities Supercycle Is Here!

There are distinct cycles in the commodity markets, and the last big bull market started a decade ago with gold.

But don’t worry, you haven’t missed the boat. Commodity bull markets typically last 18 to 21 years!

Moreover, I don’t think this is an average commodity bull market. I think it’s a “commodity supercycle” — a much longer period in which commodity prices absolutely soar.

This is a rare and powerful event, indeed. In fact, there have been only two supercycles in the last 150 years:

• Commodities Supercycle #1 saw the Industrial Revolution create powerful and sustainable demand for raw materials for 33 years between 1885 and 1918.
• Commodities Supercycle #2 started after World War II and ran for 29 years between 1946 and 1975 as the reconstruction of Europe and Japan helped set off a global commodity price explosion.

So what’s fueling Commodities Supercycle #3?

Ravenous demand from emerging markets around the world for copper, aluminum, steel, coal and more is ramping up. China, Russia, the Middle East, India, Brazil and others are devouring raw materials as they build up their economies.

In fact, Merrill Lynch forecasts that more than $6 trillion will be spent on infrastructure improvements over the next three years — with 80 percent being invested in the BRIC countries (Brazil, Russia, India, China).

South Africa will spend $115 billion; Mexico, $140 billion; Brazil, $517 billion. In Russia and the Middle East, expect $500 billion and $586 billion, respectively. China, meanwhile, will spend more than all of the others combined — $3.8 trillion — mostly on water, environment, transportation and energy.

Plus, there are two more forces at work here:

Force #1: A flood of money from central banks desperate to keep their tottering economies afloat is lifting the boats of all hard assets.

Why?

Because while printing presses can manufacture money, they can’t create more hard assets. That’s why we call gold, silver, oil and other commodities “real wealth.”

Force #2: The easy-to-access deposits of many basic commodities have already been discovered and used up.

Yes, we can find more oil, for example. But to get it out of the ground, we have to come up with new, cutting-edge technologies — such as in the Bakken oil shale or such as drilling offshore wells as deep as Mt. Everest is high.

So we can find more resources, but it’s not cheap. And the further and further we have to stretch to get new deposits, the higher and higher the costs — and prices we’ll pay.

You can see why a new commodities supercycle is here.

And while prices have already doubled, there’s no reason they can’t triple or quadruple!

Keep in mind that the last two supercycles pushed commodity prices higher for an average of 31 years.

Increasing Demand from Overseas Consumers
Will Only Stoke the Supercycle Fires Further …

Only a generation ago, most people in China were riding bicycles. Now, China is the biggest auto market in the world. And the Chinese are hopping into their cars to go buy air conditioners, refrigerators and Western food.

They want to eat, drive and live like Americans. In fact, everybody does!

Asia boasts fully HALF of the world’s population. And they are all traveling on a similar path — from austerity and rice bowls to prosperity and all-you-can eat buffets.

The restaurants are air-conditioned, and the consumer electronics are state-of-the-art. To me, that means their road to the future is paved with steel and aluminum, oil and coal, silver and copper.

Not long ago, some scientists figured out that if everyone in the world wanted to live like Americans, we’d need to find three more Earths to supply all the raw materials. That means commodity prices are headed higher, higher and HIGHER!

Just take a look at what’s happening in individual commodities markets right now …

Silver: As of Thursday, November 4, the U.S. Mint had sold more American Silver Eagle bullion coins in 2010 than in any other year of the coin’s history. October sales combined with the 255,000 already sold in November lifted 2010 Silver Eagle bullion coin sales to 28,885,500.

What’s more, every pullback in silver brings in new buying. On Wednesday, when silver dropped $2 an ounce, sales of Eagles soared to 675,000 on a single day.

My new target for silver: $50 an ounce!

Gold: Gold eagle sales are soaring as well, and worries over European sovereign debt are keeping the fires lit under the yellow metal. Demand for gold is rising among investors large and small, as well as central banks.

I now expect gold to go to $2,500 an ounce.

Copper: The red metal just hit a new record high because copper exports from Chile are under pressure, even as demand for copper in China ramps up enormously.

Result: The industrial metal, which is used in plumbing, heating, electrical and telecommunications wiring, has rocketed by around 50 percent since June to a new peak.

Oil: Global demand is rising, U.S. supplies are falling as our economy improves, and Chinese demand is insatiable. Is that bullish for oil prices? Heck, yeah!

In fact, I think crude oil is going to $105 a barrel in the next six months!

And agricultural commodities like soybeans and cotton are exploding higher, too!

Look, the math of the commodity bull market is simple:

You add the massive new demand in Asia with rapidly dwindling supplies, then multiply it by the rapidly growing amount of paper money in the world.

What you’re left with is the potential for this supercycle to drive prices to all-time highs … then, to all-time inflation-adjusted highs … and ultimately, beyond.

What’s important here is that big bull markets like this one usually don’t provide “perfect” entry points. Those who are waiting for the “ideal” place to enter the commodity supercycle may have a long and frustrating wait..

You can sit on your hands and watch the parade of profits pass you by. Or you can join in. The choice is yours.

Reminder: If you want to learn how veteran hedge fund manager Monty Agarwal is investing $1,000,000 of Martin’s money, tomorrow is your last day to view their special presentation. After tomorrow (Monday 11/15), not only will you miss this extremely valuable information, it will be impossible for you to join them. Click on this link.

Yours for trading profits,

Sean

This investment news is brought to you by Money and Markets. Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit http://www.moneyandmarkets.com.