Did I Mention That I'm Insanely Bullish on Gold?

I think a lot of people are missing the significance of the Gold break out over $1000. This is now the floor for the price of Gold. The down side is very limited at this point and the upside potential is huge. It basically took Gold 18-19 months, or about a year and a half, to consolidate and build enough of a base to break through the $1000 ceiling and turn it into a floor. This is a big event and it got a lot of people to pay attention to Gold for the first time.

Of course, most of the attention, other than from Gold cheerleaders like me, is pooh-poohing the move or explaining why all of a sudden we are in a bubble and/or how the move is already over. Those who never saw it coming ain't qualified to tell us when it ends, but that doesn't seem to stop 'em. And yet, what asset classes besides Gold and short-term federal government debt (don't get me started on the latter...) are at all time highs? Do those doubting Gold here even understand why it's at all time highs?

The "wall of worry" in Gold is alive and well (present company excluded) and this is predicting a continuation of the Gold bull. Gold has dropped 10% and already people are looking for a collapse back down to $1000 or below, ignoring the longer-term technical and fundamental situation. The "big picture" is the break out above 1000-1030/oz., which was successfully re-tested and held. This is the new floor for Gold. Sub-$1000 Gold prices are unlikely to be seen again for the rest of this Gold bull market.

I think Gold is going to explode higher and finally pull the Gold stock indices to new highs. In fact, I think there is a great recent template for what may be coming for the Gold price. Here's the chart of interest - I have scratched out the name of the item and the years on the chart to pique your interest:



And, of course, here's what came next:



A recent template on a precious metal gone wild. Think it can't happen in Gold over the next few months? BWAHAHAHAHAHAHAHAAAAAAAAAAAH!