Gold Bottom Is In

I think we have seen the bottom in Gold for this short-term correction. I could be wrong, of course, but I put my money where my electronic pen is and bought GDXJ May 25 calls today at the AM lows. I am now 95% invested in my speculative account with only a smidge of dry powder for next week.

I also took this opportunity to buy some more Gold bullion through Bullion Vault last night. Since I don't want these recent purchases or my core physical Gold and Gold stock holdings to lose money, I am now quite biased.

Here is a current 1 month intraday 60 minute candlestick chart of the GLD ETF thru part of today's action:



And here is the correction in Gold back in December of 2005, again using the GLD ETF as a proxy to allow me to do intraday charting (can't do intraday charting with spot Gold price using stockcharts.com):



The only commentary I have about these two charts: close enough for me. Back in 2005, Gold went up almost 50% between the late December 2005 lows shown in the chart above and the May 2006 top (i.e. $490 to $730). I have no concerns about the US Dollar Index. I have no concerns about the stock market. I am focused on the strongest global bull market in the world - Gold. It is Gold's time and I intend to be along for the ride. I think Gold stocks are getting ready to explode higher across the board whether general stock markets hold up or not (I think not, but we'll see).