Gold/Silver Charts Looking Rodeo - Dollar Chart Looking Purgatorial...

I have to say, moving away from the large August gold contract "roll" period/options expiry and moving into the traditional period of seasonally strong buying in India, that gold/silver fundamentally and technically looks very bullish.  Here is a bit of useful color from today's "JB" commentary in LeMet's Midas report: 

The Istanbul Gold Exchange has reported Turkey’s July gold imports as 19.929 tonnes, 39.1% above last July and the largest quantity since September 2008...The Istanbul Gold Exchange has reported Turkey’s July gold imports as 19.929 tonnes, 39.1% above last July and the largest quantity since September 2008

Indian premiums overnight were also quite robust.  Clearly the gold-buying world has aptly adjusted to the idea of paying $1200/ounce for deliverable gold.  Again, the key to understanding this next phase of the gold/silver bull is to understand the dynamics of the physical market.  This is why dopes like Dennis Gartman will make incessant asses of themselves as they pontificate sweet nothings about the precious metals market.

Here's some charts:

The U.S. dollar chart looks like it has contracted HIV.   I'm sure it is reflecting the anticipation of whatever impending QE program Bernanke is getting ready to unveil.  I personally believe that we'll see a "shock and awe" number - like something north of $2 trillion.  Remember the ECB announced a $1 trillion program.  The U.S. financial condition is easily more than two times worse than that of the EU.  And the U.S. economy - contrary to the stinky excrement coming out of Bernanke's mouth today, is falling off of a cliff.  Here's the chart: 

The dollar needs to hold at the 80 level and rally from there, or it is going to test the 2008 lows at the 71-ish level.  If the dollar were to fail at 71, I would suggest that it's time to start stockpiling food, ammo, propane and precious metals, if you have not begun to do so already.  I'm serious about that.

Here is the utterly idiotic garbage put forth by Bernanke today at some southern redneck legislative symposium: "[T]he household sector, growth in real consumer spending seems likely to pick up in coming quarters from its recent modest pace, supported by gains in income and improving credit conditions."  Here's the link:  Bernanke: Insane or Stupid?.  Now, compare Bernanke's crapola to reality, in which "[m]ore than two-thirds of the nation's 3,141 counties, and 37 of 50 states, endured more hardship in June than in May, the AP's Economic Stress Index shows"  Link.   That's real data that reflects the true condition of the U.S. economy. 

Can someone explain to me from which sewer Bernanke is sourcing his views?  He also made an appeal to the States to build up "rainy" day slush funds.  Excuse me?  Nearly every State out there is running massive deficits, the bulk of which are being "doctored" with questionable accounting and the looting of State pension funds.  How the hell does Bernanke propose that the individual States save money?  Colorado has a balanced budget requirement and will probably fall at least $200 million under budget this year.  California/Illinois/New York/Texas - fuggedaboudit. 

Someone must have shoved that ivory tower, the one at Princeton which used to encase Bernanke's head, pretty far up Bernanke's ass because he sure made an ass out of himself with that speech.