Sunday, November 12, 2006

Bullish Gold Price Charts

Most in the English speaking world are comatose, clueless about the 5 year old gold and silver bull markets that are underway. Is this merely because bull markets start in a stealthy manner with no announcements, horn blowing, bells, or fire works displays? Probably not, because of the age of these 2 markets. The English speaking world is probably just the part of the whole world market that will be getting on board during the mania (last) phase, probably because they don't care to "get it" right now, that they won't get it until they can't ignore incredibly high prices that cause a lot emotional pain to those that are still not in the bull market.

In between the stealth and mania phases is the wall of worry phase, where people worry about actually taking action, actually putting their "money" on the line, worry about whether the uptrend has ended. This recent gold price reaction since the top at the end of April of this year suggests that the bull is out of the stealth phase and into the wall of worry phase, particularly after gold's great run up from the time it broke up and out of its base late last year.

Has gold started a new more upward sloping trend line and channel on this 10 year chart:
(click on chart to enlarge)

Great looking bullish gold price action on this 2 year chart:
(click on chart to enlarge)

Bullish action to gold's right hand bottom on this 6 month chart:
(click on chart to enlarge)

Another indicator of a really good upward move in the gold price is the AMEX's HUI index of gold and silver equities. It looks to be chomping at the bit to make another substantial run up. A double from its break out level of the flag to around 700 by the end of 2007 could be conservative.
(click on chart to enlarge)

Why conservative? The combined value of world equities is estimated to be about $45 trillion. The combined value of gold and silver equities is estimated to be about $150-160 billion. It will take just a small amount of that $45 trillion to radically jack up the price of gold, silver and the associated equities as more and more eyes turn to the increasing gold price / silver price. 2007 should be one heck of a year. And even then there is still a lot more to go on the upside.

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