Saturday, October 10, 2015

Gold chart gloating

Here's your gold chart and gloating, after the clickthrough so I can use the traffic to find out how much people care:

The past 3 months have printed a series of higher lows. On a break above the previous high at $1170, the whole damn game suddenly changes.

I'd like to see more volume though. Then again, maybe volume can follow price.

And as a reminder, the big 1980-2001 bear market in gold was caused by an EM collapse (which isn't happening in India and China this time around - and since Brazilians and Turks don't buy gold we don't give a shit about their problems), the unwind of a previous gold bubble (which wasn't as extreme in 2011-2012), and a massive productivity improvement with the introduction of leaching (the equal of which I haven't recently heard about).

There's no reason for a 20 year bear market in gold to happen again, as long as India and China still exist and gold mines still deplete.

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