Thursday, March 11, 2010

Gold Head And Shoulders Pattern

It looks like what is developing with the gold chart is an upside down head and shoulders pattern.

But, a smaller one within a larger one. All bullish!

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The powers that be are worried that a big chunk of bond market participants/players are starting to worry if government debt (US Treasuries for an example) are not really a "safe haven" any more.

". . . Moreover, the global economy has moved into uncharted waters. Never before has a monetary authority embarked on a well-publicized monetary policy whose sole purpose is to boost asset prices in order to sustain consumption, and hence the economy, as is now the case in the United States. That such a desperate, and on many counts highly objectionable, monetary policy can only end in calamity should be clear, but what is less clear is precisely when disaster will strike and how the calamity will play itself out.

Credit has to be given to Fed Chairman Alan Greenspan. He is the first head of a monetary authority who has not only managed to create a series of bubbles in a domestic economy, the United States, but also managed to create bubbles everywhere in the world -- in New Zealand and Australian dollars, emerging market debts, government bonds, commodities, emerging market equities, and capital spending in China. This is an achievement that no one else in the history of capitalism has ever accomplished, and one that investors will never forget once this universal bubble bursts and fills entire chapters of financial history books." … Marc Faber, "Strategic Investing," April 7th issue, 2004

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Howard Katz has some good economic history and principles in 2 articles over at Gold Eagle. The type of stuff the schools/colleges/universities refuse to teach. The type of stuff you need to know for survival reasons:

Howard S. Katz
March 8, 2010

Howard S. Katz
March 1, 2010

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Gold and silver are chomping at the bit to run higher.

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