In the course of the last week, we witnessed two important previously predicted conflicting move occurrences in the currencies market. First, the dollar attempted to make gains especially against the Euro, Pound and Franc. Secondly, the Yen gained against all the currencies. This upbeat trend of the Yen was a bit baffling and no body understood why it was making gains. This is in view of the fact that the expectation was for its moving down together with the Euro and Pound. However, this was not a surprise to me since as you may recall, I foresaw the strengthening of the Yen a while back. Indeed I have often mentioned this many times. When nature plays its role, it is pointless to go into the details of why a situation unfolds as it does. It is therefore not helpful to attempt to unravel the reason behind events as occurred last week. I see gold soon performing in the same way when the dollar and gold will be gaining at the same time. There is therefore no need to spend time analysing the details of why it will go up against the trend this time. Nature operates under its own timing and when it brings its trend, we just have to accept it as it is presented to us. This is what I have been doing for the last two decades through astrology, vision or prophecy.
Note - Some of my followers and members may often wonder why I do not always reply to their emails. Let me clarify that I read each and every email received and that I carefully note down your concerns. After that, I sort the mail into various categories and then give my response either within the newsletter, on the website or periodic letters. Many of you will therefore find their answers in my newsletter. In the event that I have not fully responded to your questions, please send me another email and I shall duly incorporate my reply in the next newsletter.
Let us now see what this week indicates:
Predictions for 18 to
A few members are still not convinced with my future trend of gold and dollar rising together. I know that this goes against logic and I can therefore understand any lingering doubts. However, planetary combinations indicate staunch support for gold regardless of how strong the dollar gets. I am not declaring that this is going to happen overnight: but in early February we should see signs of its gaining against all currencies, including the US Dollar. I have been waiting for this period since the last three years. In 2001, I predicted the going down of the US Dollar against the all major currencies as well as gold, and this gave re-birth to gold. Now gold is not a baby any more and knows how to walk without support of dollar. A 48 year of great gold era or cycle is starting soon. Future king is already born safely (in 2002 I mentioned one article heading - "RE-BIRTH OF GOLD") and now soon he is turning to prince and then the king.
A few weeks back, thousands of metal investors started to sell gold once they saw the dollar rising. This selling created a negative external force against the trend of gold. I see this ending quite soon and though many experts are calling it the end of gold’s bull market, I beg to differ. There are even assertions that gold will soon go down below $400 and stabilize at around $350. I simply don’t see things unfolding that way. Gold will actually recapture its upbeat trend and cross $450 in February.
This week - Gold is going to remain stable this week. As I mentioned in my weekly newsletter, it will start moving up from the last week of January. Even in the worst case, I do not see it going down below $414. The risk of downside is therefore not very high at this level. Those who don't want to trade in gold during these uncertain times can alternatively buy metal stocks. Metal stocks will surprise many investors this week as well as this year by moving up quite strongly.
As a final note for gold, I still assert that I expect a strong rise of gold prices from February not January.
Yes indeed, an upward move of my favourite for 2005 (silver) looks very exciting. The steering of the metals will be in the hands of silver while gold will be sitting back relaxed and watching like a god father or grand father. At this stage one can start accumulating in small quantities. Silver will soon cross the $7.00 mark but for purposes of trading, the safe period will be from the last week of January.
Caution! – Even though I have predicted a strong rise, this is not to mean that you can heavily speculate. Such action would be a sign of greed, a vice that the rules of nature don't allow. Please therefore take positions that are reasonably safe in accordance with your financial strength. By demonstrating prudence and patience, time will reward you huge returns that could well make you start thinking of retirement.
Note – In the next two years, metals will be the only safe area in which to put money. All other investment areas will be riding in the motions of the hidden or invisible wave.
Please avoid or sell platinum. On the other hand, copper could move up and down during this week, but the news of a slow down in
It will remain stable during this week while a rise is coming from next week. One can therefore buy on this Friday.
Tuesday’s a strong rising can be taken as a selling opportunity. World markets are slowly approaching the major crash that I expect from the middle of February. In view of the grim outlook for the stock market, I do not recommend any buying except metal and alternative energy stocks.
Despite the RISING on Tuesday, one can go short in oil because the prices could tumble by more than 7% during this week.
Both the Dollar and Japanese Yen remained very strong in the previous week. The outlook for this week is that the dollar will remain directionless for the first two days but rise very strongly from Thursday. Trade accordingly therefore as this one line prediction could make you huge returns.
The South African Rand looks very weak indeed and it may fall up to 8.15 by the middle of this year. The South African gold stocks will have a great upside move.
Though the monthly newsletter and last week’s newsletter both indicated a negative outlook for grains, don't miss out on the opportunity to buy slowly grains this week. This is because they could rise very strongly for the next two months.
As predicted, coffee crossed the $100 mark once again in the previous week. On Wednesday, coffee investors will witness massive volatility of prices. I will send an alert on coffee on Wednesday morning.
Don't miss the opportunity to buy cotton because I expect a very strong rise in cotton prices in the near future.
In the middle of the previous year, I gave a very good recommendation in regard to orange juice at a time when prices were around $56. It is currently trading above $80 and my new LONG TERM prediction is that it will cross the $100 mark. During this week, it will however be unstable or even go down.
I see sugar prices going down and one can therefore book profit at this level. From the end of April, a very strong upward move will begin and prices may touch a historic high by end of the year.
Last week’s uncertain trend will persist even this week with the trend remaining directionless except on Tuesday when there will be a very strong upward move. By the end of next week, treasury bonds will start a very strong upsurge that will surprise a lot of experts.
NOTE - I am increasing newsletter price in three stage. One I did yesterday and two more increase will come.
Thanks & God Bless
Mahendra 16 Jan 2005
It is time to expound on a few IMPORTANT POINTS so that you may clear your doubts and have an indication of the direction in which to trade for the long term. Following are several issues which I believe will be helpful towards this end:
Many of my followers are a little confused in regard to my recent remarks about the strengthening of the US Dollar and weakness in metals. Let me confirm that the dollar will indeed gain, but this upsurge will not be sustained for long. In actual fact, the maximum period for which the dollar could stay up for three months and can remain stable for seven months, after which it will be relegated to the sidelines once more. Likewise, the Euro and the British Pound will also not perform well (I SEE ALSO THESE CURRENCIES COLLAPSING). It is therefore clear that GOLD WILL BE THE ONLY PHYSICAL ENTITY THAT SHALL TRIUMPH AGAINST THE CURRENCIES. Consequently, THERE IS NO NEED TO BUY THE US Dollar or sell the Euro: just buy the GOLD.
GOLD VS DOLLAR - It is quite apparent that the dollar factor was present in the last week of December. It is still there in the current month of January and it will in fact persist into the first two weeks of February as well. During this period, two powerful boxers will be squaring it out in the ring [US DOLLAR vs. GOLD]. Though gold may take some pretty strong punches at first, it will absorb the bashing quite easily and eventually emerge victorious by mid February. This remarkable resilience of gold is owing to the fact that compared to the dollar, it is the real thing and also part of nature. Very soon, the world shall witness the Dollar rising simultaneously with gold, though the major rally of gold prices will be from mid 2006. After this, gold will reach $1000.
In the preceding statement, I am talking about a strong dollar but it will still not remain strong in the long run. It may gain 12 to 15% against European currencies but then it will fall against Gold.
Silver will be the key investment area to watch for the next three years. I do not want to predict the price target but one thing is sure; its prices will surprise the investor community. Just be patient and wait for the right buying opportunity and don't short silver at all. Soon in the next few months silver will start trading above $10.
I WOULD LIKE TO BRING THREE IMPORTANT FACTORS TO YOUR ATTENTION:
1. GREAT CRASH IN WORLD STOCK MARKET INDEXES - Once again I am waiting for the occurrence of a major crash of all markets, which is now not very far. Nature’s wave is gradually trying to grasp it and pull it down to where no one can come forward in its support. The crash will render a lot of people bankrupt and many will go into depression. Major banks and financial institutions as well as funds will close down overnight. People will queue out side of these luxurious offices and demand a refund of their hard earned money. The USA and EUROPE will be the worst hit by this crash. Though the Asian markets will also be severely affected, they will survive. Please note that my intention is not to scare anyone; I am merely exercising my duty to warn you.)
2. BURSTING OF THE HOUSING BUBBLE – A few years back I predicted a great rise in property prices in the USA and Britain. The period for thriving is now over and we are very close to the bursting of the housing bubble. After this, we shall not see the current valuation for next 29 years. This burst will have an immense negative impact on the banking/financial industry. Due to several reasons some of which I am mentioning in this letter, there will simply be no buyers for properties.
3. CRASH OF THE VALUE OF THE US DOLLAR AND EUROPEAN CURRENCIES - Any time from 2006, a big crash of the value of the US Dollar will occur. The value of money will plummet by up to 90%. This will be like a revolution in itself and it will be very interesting to watch what the role of the government and the Federal Reserve will be. The melt down in the value of various currencies will be a clear sign of inflation but the question is ‘who will have any buying power?’ The situation will be combination of inflation, deflation, recession and depression, a phenomenon I choose to call "slepplession".
4. NATURE’S UNREST AND AN UNCERTAIN WORLD SITUATION - We have seen the terror of nature unleashed by the recent tsunami. I have been warning of a natural catastrophe. For instance in 2002 World Prophecies, I stated that weather conditions in the whole world would change and disrupt people’s lives. Every so often, nature presents circumstances in which not much can be done. (It is like when a child spills coffee on his father’s suit. Since the deed is already done, there isn’t much that the father can do about it). Natural disasters will therefore continue to play a devastating role in world affairs. I don't want to scare people and I shall therefore not specifically name the region where the next major calamity will befall. Suffice is to say that by June 2005, two major world cities could be destroyed by nature.
5. CHINA COLLAPSING – Back in 1987 when I predicted the collapse and eventual disintegration of the USSR, people were extremely reluctant to believe me. Today, I predict a similarly astounding prospect. There will be a great social and economic collapse of China in the next 40 months. I know that many people will not believe me, but the first sign of this will come within a few months when China will announce an economic slow down as well as an internal financial crisis. The Chinese currency will drastically lose its value and they might introduce other currencies following the collapse of the banking or financial system. Countries banking a great deal on China may also face a crisis as a result of the Chinese breakdown.
I know that it is hard to believe what I am saying today but this has always been the case with my predictions. Time will be the only answer. It is not my intention to scare anybody but after reading this letter, one should remain very alert on any future planning. Due to their significance, I have been talking a lot concerning metals. The magnitude of their significance will be further demonstrated by many countries taking control over all mining areas as a result of the economic meltdown. The USA may attempt to gain control over the world’s gold production, but we shall see what happens then...maybe it will be a new war for acquiring gold and silver, as these will be the only valuable assets or currencies left following the economic meltdown and currency devaluation.
Thanks & God Bless,
12 Jan 2005