Some might recall a year ago I wrote here, that if Gold breaks this line you should jump in because its off to the races.
It is so much trickier to predict the future than the past so its good to have a long term record on tap like this, too substantiate ones crystal balls.
In March I drew this for you:
Not bad if I may say so myself,
Now the chart is suggesting the potewntial for extreme moves $4000 perhaps even $5000.
I am not a gold fan but I don’t trade what I think I trade what I see and this is what I see, again from March.
So let me say for the record, I ‘dollar cost average’ Gold, Silver and Platinum but it’s a small part of a wide portfolio of diversified assets. The dollar is not going to perish, gold will never be money in your pocket again. However it is going up and it looks to go up a lot and not a some point in the apocalyptic long-tomorrow but in the, right here, right now.
Yes, Gold is for electronics. Yes, Gold is for jewellery but beyond that, why is Gold not just another element in the periodic table that is consigned to boring chemistry. The answer is, we are told my many that gold is the only real money and somewhere in a primitive part of our brains Gold holds a special emotional place.
Yet Gold is not the only true money. The facts of the matter is that where there has been money there has always been credit and where there is credit there is always some kind of ‘fiat.’ Gold money cries out for banking and banking leads to lending and lending leads to IOUs and IOUs lead to a monetary system where money with intrinsic value is the tip of an iceberg of currencies and financial instruments.
Gold can be money, was money, can be currency and is currency and Gold is the currency of war. That is why countries hoard it, do you think governments suddenly get financially prudent and store gold so they can go back to the ‘gold standard.’ No gold is a stock of financial ammunition in case of war and that is why its going up. Governments are getting increasingly nervous and they are caching golden bullets.
Here is the very bullish chart.
I don’t have to draw one single line on it to show how bullish it is.
Nor do I on this chart.
Or this:
The only question is, is the Gold price illuminating the recent past or predicting a very uncertain future.
For those praying for peace and good will to all humanity, the following chart is what they will want to see.
Yet for those who see trouble ahead my chart from March this years is a road map for trouble ahead.
I feel Gold predicts the future not illuminates the past and that price moves of the past months have indicated what has then happened. From that point of view there is more to come. This makes Gold a gateway to all kinds of investments and trades. That is unfortunately cold comfort.