Thursday, August 21, 2008

Gold and US Dollar Outside Days

On Tuesday (the second price bar from the right side of the graph), gold made a very bullish outside reversal day (to the upside):

Also, on Tuesday (the second price bar from the right side of the graph), the US dollar made a very bearish outside reversal day (to the downside):


Three interviews of Jim Rogers:

"Rogers first made a name for himself with The Quantum Fund, a hedge fund that’s often described as the first real global investment fund, which he and partner George Soros founded in 1970. Over the next decade, Quantum gained 4,200%, while the Standard & Poor’s 500 Index climbed about 50%."

March 17th, 2008
Snapshot From Singapore:

April 8th, 2008
More Pain for the Greenback, and the Failure of the Federal Reserve

August 19th, 2008
Jim Rogers Predicts Bigger Financial Shocks Loom, Fueling a Malaise That May Last for Years


Good 'ol Aubie Baltin includes some good history from the last gold bull market:
21st Century Gold Rush Re-Examined

" ...
Some examples were: Lion Mines – 1975 price $0.07 / 1980 price $380. YES, that’s right it’s not a misprint - you could have bought 10,000 shares of Lion Mines in 1975 for around $700 dollars and if you held on for the whole 5 years until January 1980, you could have netted a total profit of around $3,799,300. Not bad ay!!!!! A few others were Bankeno – 1975 price $1.25 / 1980 price $430; Steep Rock – 1975 price $0.93 / 1980 price $440; Mineral Resources – 1975 price $.60 / 1980 price $415; Azure Resources – 1975 price $0.05 / 1980 price $109. The Majors also performed superbly well, but nothing compared to the Juniors. WARNING: The Juniors, although offering great potential, also contain much greater risk as most of them ended up falling back to zero. So be careful. ... "

Human nature has not changed in 5,000 years or so, so why should it change in the next 5-10? Thus the value of studying history. Gold and the US dollar outside reversal days are important sign posts, gold and silver bullish sign posts

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