The Gold Bull grows into a parabolic form on the arithmetic chart, going higher in price per time along the way. Thus each wave higher is “longer in price” while taking less time to play out. The Gold parabolic move is created by the parabolic increase in Dollars being printed.
In the chart, below, we can see the first move higher in this Gold Bull in BLUE. The 2nd Gold move higher in RED is longer and rises at a higher angled than the first blue one. The 3rd move higher for Gold in BLACK was longer than the red one and rose at an even higher angle. We would expect the next rise for Gold to be longer than the black move and to rise at a higher angle than the Black move. I have placed a GREEN DOTTED ARROW to project the potential price rise for the coming wave higher in Gold.
It appears that we are very early in this new wave higher for Gold. The fundamental basis for such a price event is the over $1.3 Trillion Dollars the Fed has already printed since December, along with the necessary QE Dollar printing to be announced over the coming days.
As more Dollars are printed, the “increased supply” of Dollars causes the market to “devalue the Dollar.” This is especially true with world-wide demand for Dollars falling as other countries look to sell their Dollar Reserves in the face of the Dollar Devaluation created by the Fed. As the Dollar is devalued, most everything you own is devalued along with it. Thus, Big Smart Money saw all of this coming and accumulated Gold back along the BLUE LINE rise, the base of the Gold Bull move. Value buyers ALWAYS create the base of Bull Markets.
The devaluation of the US Dollar leads to a “divergence in price and value”- something that most people do not understand. In this context, different asset classes retain different levels of value at different points in the cycle; some like Gold and Silver retaining the most intrinsic value NOW, while items like the Dow will not see value return in full until after the economy recovers and earnings/ dividends reflate. Below, are some links to other related Goldrunner articles you might wish to browse. One article series I am in the process of developing is on “price versus value”, and Parts I and II are linked, below.
Link to BIG PICTURE GOLD- PART 1- THE ONLY GOLD CHART THE LT INVESTOR NEEDS
A much more extensive writing on Gold and Gold charts, where Gold might be going, and when; is linked, below, to Jim Sinclair’s site. You will have to scroll about half way down the page, but the article is there in its entirety.
As we go further in this series on “Big Picture Gold”, we will eventually merge our thoughts with those currently being added in my series on “Price Versus Value” in the series on “Dow Stock Crash.” I’ll post the links to Part I and Part II, below, so that you can start to become familiar with the concepts of “price versus value.”
My article on THE SILVER ROCKET is linked, below
The Gold version.
And finally, if you need a break from all of the negativity, you might want to take time out to read the following story to a younger loved one in the family.
Goldrunner maintains a subscription site that covers Gold, Silver, and the Gold and Silver Stocks that can be found at;
Goldrunner is also in the process of starting a new and free public newsletter that will be delivered via e-mail, called “Goldrunner’s Fractal Corner.” If you would like to receive this newsletter, you can send an e-mail to Goldrunner at Goldrunnerblog44@aol.com
For the moment,
Please understand that the above is just the opinion of a small fish in a large sea. None of the above is intended as investment advice, but merely an opinion of the potential of what might be. Simply put: The above is a matter of opinion and is not intended as investment advice. Information and analysis above are derived from sources and utilizing methods believed reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Comments within the text should not be construed as specific recommendations to buy or sell securities. Individuals should consult with their broker and personal financial advisors before engaging in any trading activities. Do your own due diligence regarding personal investment decisions. In the interest of full disclosure, GOLDRUNNER is personally invested in the Precious Metals sector including various Precious Metals and other individual stocks. GOLDRUNNER reserves the right to modify or eliminate any or all positions at any point in time.
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