A legendary hedge fund manager just predicted gold may soar to $1,700 “rather quickly.”

“Best Trade for the Next 12 to 24 Months”
By Bill Fleckenstein President Of Fleckenstein Capital
June 12 (King World News) – 
The market tried higher initially, but it didn’t take long for selling to get the upper hand, and the indices were lower through midday, led by a 0.5% loss in the Nasdaq. In the afternoon, the market traded sideways and with an hour to go, when I had to leave, it was still where it had been at midday.

Away from stocks, green paper was a bit stronger, as was fixed income, while the metals perked up, gaining about 0.5%, with the miners quite strong.

Jones-ing for Gold
I’m not sure what the proximate cause was for the move in gold, but it could have something to do with very bullish comments this morning by Paul Tudor Jones. When someone of his caliber of intellect and trading skills says one of the best trades over the next 24 months is gold, and that it has “everything going for it” because it is the “antidote” to financial assets institutionally, that can get people to sit up and take notice…

To listen to 
Doug Casey’s just-released KWN interview discussing his prediction of financial and economic chaos and a panic into gold CLICK HERE OR BELOW:


When asked how high gold could go, Paul said that if it gets through $1,400 it will probably move to $1,700 very quickly. That would likely gin up a lot of excitement were that to happen.

Setting the Table
Recently, Stan Druckenmiller also made bullish comments about gold, and the thinking for both seems to be centered around the fact that the Fed is obviously done tightening and at some point will be on a new easing cycle. The only question is how much and how soon.

There is speculation that there will be a cut at the FOMC meeting next week. I seriously doubt that, but I also think it wouldn’t take that much stock market weakness to get them to do something. Of course, this is the reason I have focused on gold and the miners, as opposed to short selling: to capture the train wreck central banks have created and because it is so difficult to be short in an environment with so much central bank hype and noise.

Initial rate cuts usually don’t rescue the market or the economy, so stocks could easily still tank if the Fed cuts, but the path of least resistance for the metals will be higher. Plus, I believe I can make far more money in gold and the miners than I can being short.

Looking for the Right Moment
In terms of my trading tactics, I have kept my positions fairly full through the indigestion we’ve had since February until just recently. I trimmed some exposure, but then put most of what I trimmed back on, and I am positioned pretty aggressively. I do plan to add a bit more, but my strategy has been to find some reasonable trades to beef up a bit on a decisive break over $1,350, or during a pullback that I understand where I think it will reverse. I really thought the latter would be more likely than the former, but the “correction” has only been going on for a few days, so I don’t want to leap to any conclusions.

***Also just released Paul Tudor Jones – “Gold’s Going To Scream” CLICKING HERE OR ON THE IMAGE BELOW.

***Also just released: Is This Why The Price Of Gold Is Trading Higher Today And Closing In On A Breakout? CLICK HERE TO READ.

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