Gold Price Uptrend Line is Sound

Consider a 20 % pull back in oil from todays $125 Oil Price level. That leaves you with a $93 Oil Price. Now consider the historical GOLD/OIL ratio is 15 - 20, you can see Gold is very reasonably priced here. 16 times 93 gives you a $1,488 Gold Price.

My view is there is a possibility the world is coming to the realization that a $100 Oil Price and climbing is the new reality.

The Gold Price May Not Be Rising in a Straight Line

The 70's are back! Is that what is being quoted in the Financial Press this week?

Well maybe the chart patterns for the gold price of the 70's are back too. I think they are.

Notice this is a logarithmic scale for the gold price and the silver price, and the trend line is not linear, that means a straight edge will not give you accurate support line for the price of gold or silver. This is important for investors and traders to consider because they need to know where to put new capital back to work on pull backs.


Jim Sinclair (bio) was the largest gold trader in the world in the 70's so I asked him what tool do we use when the straight edge no longer works. He suggested that I try a French Curve. Was I ever surprised, what a fit.


The French Curve shows a momentum change. If you need another example of how the momentum changed for gold in the past, just look at the 70's chart for the gold price. Good luck with your new technical tools you may need it with the gold and the gold shares in the future.


The affect of the gold price rising with momentum in this fashion can have a significant affect on the gold miners. Barrick Gold produced great numbers last quarter with rising margins.


Click the Image for Barrick Gold's Full Q1 2008 Presentation









I am considering shortening my time frame for dollar cost averaging into Gold and Silver.

Don't let the Gold and Silver Price Take You Out

Jesse Livermore said there were three key elements to success in a bull market, Timing, Money Management and Emotional Control.

Look closely at the silver price chart to the left, now without being emotionally involved visualize where the best places would be to buy silver over the past 7 years. Is it a the peaks where you feel most excited? NO, Is it a month after the silver price had a sharp sell off? YES

Now ask yourself is the BULL market over? if Yes, take your money and run , and DONT LOOK BACK. If However you feel we are entering into a highly inflationary time where all global currencies are FIAT and we have years left in the Bull Market to go, you are entering an ideal time to Buy Silver and Gold.

I have studied Jim Rogers, and Jim Sinclair for hours, they have done all dirty work on the fundamentals and their thesis is published for you to analyze. Conclusion BULL market in Precious metals are far from over.

What you don't want to do is put yourself in the position where you buy strength and sell weakness.

Jim Sinclair participated in a great interview with Chris Waltzek from Goldseek Radio.

Think carefully about this important message Jim makes.


Jim Sinclair 1:11 approx
http://radio.goldseek.com/

Chris W:
You discussed the dangers of leverage in the precious metals markets while promoting cash investing, I want to give you a chance to talk about why.

JIM S:
"The majority of people couldn't stand what went on in the last month in gold, You know..they would see their life passing in front of their eyes, they would be terrified of their investments ...emotions would take them out where? Directly on the BOTTOM! -- UP it goes in they GO-- Before their finished they got no money so when you speak to many people you have a responsibility and the responsibility is sort of like don't yell fire in the theater. You don't have to have a ton of gold , A little goes a long way, Its an insurance policy."....

"GOLD IS INSURANCE when you start putting leverage on it you are a speculator...go speculate in GOOGLE, leave GOLD alone!"


A very easy and fast way to Buy Gold and Silver Bullion Online.