Monday, March 1, 2010
New Highs in British Pound Gold Price
Here's a 6 month chart of the action for Gold when priced in British Pounds (copied from Goldprice.org):
Even the price index that Gold perma-bear Nadler had Kitco.com set-up to show that the Gold price was "not really rising" is set to break-out to new highs (chart copied from this link where you can view the index - KGX is the Gold price index):
What's coming next in U.S. Dollar-priced Gold is simple. The same thing that happened to the Euro Gold price not too long ago and today to the British Pound Gold price (i.e. new all-time nominal highs). On a related note, here's an example of how fast sentiment and price action can change in the Gold mining patch. Notice this chart of the $HUI Gold mining index from the beginning of the secular Gold stock bull market in 2000-2001:
Next came this:
Paper debt tickets will continue to deflate relative to Gold. Gold stocks will benefit from this. I still believe we'll see new nominal U.S. Dollar-based Gold price and Gold stock index highs before the spring is over and I'm still all-in so I'm still as biased as can be.