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Going, Going . . . GOLD!

02 May

Gold Bull? [courtesy Google Images]

Gold Bull?
[courtesy Google Images]

In the last week of April, the big news was gold.

On January 1st, the price of gold was $1,060

On Friday, April 29th (the last market day in April), gold came close to $1,300—after smashing through the the $1,250 price resistance level on just the day before (Thursday, April 28th).

Last Thursday, I wondered if The Powers That Be would allow gold’s break through the $1,250 barrier to stand. I hoped otherwise, but I expected that gold would be smacked down below $1,250 on Friday, the 29th.

Much to my surprise, the Powers did not push gold down on Friday but instead allowed it to rise $26 and nearly touch the $1,300 level.

This price rise does not impress me as simply a victory for gold. It impresses me as a possible concession by the Powers that seek to hold gold down.

It’s certainly too early to say for sure, but it looks as if the Powers are conceding that they’ve lost the will and/or the capacity to continue suppressing the prices of gold and silver.

Consider:

Gold has jumped from $1,060 on January 1st to $1,293 on April 29th. That’s an increase of $233 or 22% in the past four months. To put this jump in perspective, recall that during the last major leg up in the gold bull market that peaked in A.D. 2011, investors were delighted because gold had been rising, on average, about 20% per year.

Gold just jumped 22% in four months—one-third of a year.

That’s an average increase of $58/month for the first four months of this year.

On Friday, April 22nd, gold closed at $1,232. On Friday, April 29th, gold closed at $1,291—a $59 increase in just one week.

Again, it’s too early to say for sure, but it certainly looks as if the price of gold has hit a turning point that augurs well for rising prices for the balance of 2016.

The evidence—not just opinion and speculation, but the evidence of price increases—is mounting that the gold bull is up and running.

The evidence—not just opinion and speculation, but evidence seen in recent price increases—is mounting that now’s the time to jump on that gold bull market.

We don’t yet have proof, but we have evidence—four months of evidence—that the gold bull is not simply up and running but may even be up and flying.

This is exciting. This might be the moment gold bugs have been waiting for for the past four years.

We shall see.

 
 

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6 responses to “Going, Going . . . GOLD!

  1. dog-move

    May 2, 2016 at 3:31 PM

    We will reflect back at the last five years price weakness in both metals as one of the last opportunities to aquire them on the cheap. I still wish the advance would take it’s time in order to keep purchasing at these reasonable levels, the advance has started. The market feels like early 2004-2005, powerful and yet un-noticed by the massses! Never did I complain about the weakness in the last five years, knowing what was coming for the upside. It is still wise to be as aggressive as one can be on the buy side while the metals are still extremely undervalued. Insofar as silver is concerned this will be the first move to the upside since 1500 A.D. The moves up in the 80’s and early 2000 were up moves within a sideways bear market pattern which began in A.D. 1933.This move should truly exhibit extreme bullish behavior. Go see the coin dealer before he/she locks his/her doors and sits on their inventory.

     
  2. moon

    May 3, 2016 at 1:07 PM

    Al,

    With no intention to annoy, have you considered the percentage rise in silver from 1/1/16 to 4/29/16?

    This may excite all metal bugs even more: historically, the price of platinum dipping below the price of gold before a major metals rally is a strong signal to many metals traders. This signal is now well established.

    Hang on. This could get fast and fun!.

     
  3. Adask

    May 3, 2016 at 2:55 PM

    Silver was $14 on January 1st. It’s $17.49 right now, on May 3rd. That’s an increase of $3.49 in just over 4 months = 25% so far = an average of 6%/month for the first four months. That’s much better, on a percentage basis, than gold–which is up almost $227 or about 21% over the first four months. So, so far this year, silver is up about 4% more than gold–or about 1% a month.

    I expect silver to rise faster than gold until the silver to gold ratio settles out somewhere around 50:1. The silver/gold ratio could fall to 40:1 or even 30:1, but it will probably tend to settle around 50:1.

    On a percentage basis, silver will be the better investment. But you’ll still have to carry and hide 50 ounces of silver to have a value equal to 1 ounce of gold.

    Either way, gold or silver, both investments should do very well.

     
    • moon

      May 3, 2016 at 4:08 PM

      Wow! A man who can cypher like that impresses me. You are so correct about what’s best for a traveler. It’s all good.

       
  4. dog-move

    May 7, 2016 at 10:35 AM

    silver consideration-
    /www.youtube.com/watch?v=ScDB9XBHokM

     
  5. dog-move

    May 7, 2016 at 10:43 AM

    I apologize for the above misdirection, this video was put out in May of 2012, yet is still very relevant–seen at SBSS #9

     

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