I see the chart I buzzed by it. A sight to behold. <g>
I obtained permission to post a bit more from the privateer sight:
the-privateer.com
He puts some great data together and the cost is low.
<On January 9, spot future Gold closed for the week at $US 426.80, a new 2004 high and the highest point yet reached in its current bull market. This week, spot future Gold rose $US 10.70, smashing through the TOP of the 1993 - 96 bull market in the process.
The present position of the Gold bull market now equates perfectly with Gold in late July 1978. On July 28, 1978, spot future Gold closed at $US 201.30. This was Gold's first close EVER above the $US 200 level. It was also the signal that Gold had decisively breached the TOP of its previous bull market. That previous bull market lasted from August 1971 to December 1974 and had carried Gold from $US 35.00 to $US 195.00.
The rest is history. Gold reached $US 200 in July 1978. It reached $US 250 in February 1979 - $US 300 in July 1979 - $US 400 in September 1979 - $US 500 in December 1979. Then, it went from $US 512 to $US 850 in the first three weeks of 1980.
Ever since Gold's $US 850 high in January 1980, each subsequent bull market has topped out at a point LOWER than the preceding one. That string has now been BROKEN with Gold now more than $US 10 ABOVE the highest close reached during its previous (1993-96) bull market. A trend stretching back more than two decades has now been BROKEN. This is a big deal.>
<Now, consider another matter. If you haven't already done so, take a look at the Gold Lease Rates. That's right, the one month Gold lease rate fell to 0.001% on January 9. There is no more downside left AT ALL. Central Banks are now offering their Gold at NO COST to any bullion bank who wants to sell it and invest the proceeds in something that pays a higher rate of return. Even T-Bills now pay a rate of return. Wouldn't you like a "mortgage" with a rate of 0.001%? Or maybe a credit card? This Gold lease rate has "DESPERATION" written all over it.
The actions of the Bank of Japan (BOJ) have desperation written all over them as well. Over the two days of January 5 and 6, the BOJ spent the equivalent of $US 7.5 Billion to suppress the Yen in favour of the $US. By the end of the week, the $US index had hit yet another low in its bear market, closing at 85.39. The BOJ is the ONLY foreign Central Bank still pitching in the currency markets trying to stem the collapse of the US Dollar. So far, all it has managed to do, at a cost in the $US hundreds of Billions, is to prevent a fall from turning into a rout.>
<Gold is moving up in $US terms. It is not moving up in terms of other major currencies. Silver is booming in terms of ALL currencies, always an advance warning of a similar move in Gold. Watch for Gold to start to accelerate in terms of $US and start to move up GLOBALLY. When that happens - and it will, even if it takes a correction in the meantime - the debate will begin too. There is no major party politician in the US who is competent to deal with it.>
Quote from earlier in the week.
<The spot future Gold close of $US 424.80 on January 5 is the highest since spot future Gold closed at $US 427.00 on December 6, 1988. Gold's 1996 bull market high has been decisively breached. The potential for an upside acceleration from here has increased dramatically.>
<Last Monday, January 5, spot future Gold jumped $US 8.70 to $US 424.80 and we ran an update on our Gold Bull market weekly report. If you haven't already read it - you can do so here. By the end of the week, the spot future price was up another $US 2.00 to a decade plus high of $US 426.80. What we said on January 5 stands - Gold has DECISIVELY broken above its previous (February 1996) bull market top.
This event, breaking through the previous bull market high, is a VERY big deal all by itself. Since Gold reached its all time high of $US 850 in 1980, each succeeding bull market - in 1982-83, in 1985-87, and in 1993-96 has topped out LOWER than the previous one. This was one of the main reasons why Gold "commentators" could get away, as they did up until recently, with claiming that Gold had been in a bear market for more than 20 years.
Now, the chain of descending bull market tops maintained ever since 1980 has been broken. At its January 9, 2004 spot market close of $US 426.80, Gold is now $US 12.10 above the spot future high ($US 414.70 on February 2, 1996) which marked the top of its previous bull market. On our strategic $US 5 x 3 point and figure chart, Gold has now risen $US 55 in a straight line. That's almost as big as the $US 60 straight line that Gold traced out in December 2002/January 2003. The BIG difference this time is that the entire "straight-up" rise has come from a base which is ABOVE the downtrend line anchored in Gold's all time high back in 1980.>
<The TOP of Gold's previous bull market has NOT caused a correction in the present $US Gold price run. But as fast as Gold is advancing in $US terms, it is still lagging far below 2003 highs in terms of the currencies which are rising the fastest against the $US. We still await Gold's REAL boom - the point where it starts to rise against ALL paper currencies, not just the US Dollar. Stay tuned.> |
