I was trying to acquire perspective on the world of gold by getting far away from the supposedly experts of all names that no-one had previously heard of, like the Jim Rickard, this other unknown,  that other newcomer, etc…. They put their grain of salt on everything as if they were knowledgeable, like « the velocity of money is slowing today » and « the CIA chief has had a bad night and is in a terrible mood this morning » etc… Gee…that really helps me try to decide if I’m going to increase my investment in a certain stock of the portfolio. Frankly, these bull-artists (as my old teacher used to call them) drive me nuts. And mind you, it doesn’t take much to do that at my age, unfortunately.   

That’s when I go back to the fundamentals (I mean the truth)   and draw a good chart to analyze it. Here-annexed is gold over a 20 year period. I’ve been watching it since 1971. It’s a long love story between gold and me. It’ll be another  golden age celebration pretty soon – if I make it. J Open the chart. What jumps to eyes is that beautifully shaped  bull phase of  11 years, from $254 to $1923, + 757 %,  followed by 4 years of correction from the peak down to $ 1045, minus $878 or – 45 %,  and finally nearly 3 years of re-accumulation, from January 2016 until August 2018 at $1165.

Here we are 5 months later at $1284, up over $200 from that low point,  en route to higher pastures. That sounds like a good proposition to me. Behind  this apparently favorable market situation is the fact that gold, having been a safe haven for thousands of years,  is making a come back in these troubled times of crazy monetary situation, international confrontations all around the world,  the reign of corruption and the threat of war. Isn’t that nice. If it’s not the end of the world, we might enjoy the fruit of our investments. Otherwise, it doesn’t look too good. Gold has always been a bad news market. That’s why it looks so good today.   

Even without the bad economic and international situation. The chart shows that this market seems in good health  despite the banksters ’hate and manipulation. In fact, even though gold was hit strongly by the banksters, it always reacted in a bullish fashion and never really panicked. That’s a very favorable sign of strength for this investment vehicle. All things being normal, it looks like the best investment in the world from a technical poin6t of view.

On the 20 year chart, you can see easily that we are coming out of a giant 10 year pennant. The shape and the trend lines fit perfectly. In the Elliott Wave identification system, the market goes up in a five wave configuration and the fourth one is a pennant most of the time. If you look carefully at the chart, the pennant is there. And so it should be. Over the last century, all nations of the world have been influenced into having their own currency and participating to the central bank system with precious metals playing a role in trying to protect the national currency.

With the creation of the LME in 1968, 50 years ago, gold has been trading as a free commodity. That was long enough. It’s very unlikely that we will ever go back. We are now going for the fifth long wave in the greatest turmoil worldwide the world has ever seen. That said, I’m not afraid for gold but I’m surprised that the price is so low. The banksters really hate it; they haven’t been able to break it, it’s not the jawboning of  our phony politicians that’s going to do it.

In fact, with the Chinese, the Russians, the BRIC and the others, I think it has become the safest investment that exists. Think of this : if a war of a certain size starts tomorrow morning, I wouldn’t be surprised to see gold up $1000 the same day. However, I’m not counting on that, but it just gives me an insurance that I couldn’t have with the Dow.

If one wants to argue that gold can still fall $1000 from the current level, my answer is that no one has an interest in seeing that, not even the banksters who need it at  full value to sustain the price of  their reserves.  I therefore disregard such an eventuality. Those who could have had such an interest have missed their chance.

Right now, even if no market goes up in a straight line every single day (fortunately), I say that the current level is low enough to make good money and that the waiting period has been long enough. We are already in the up move that will carry us above the previous one of 2011. 

More will follow later from “the sage of Ste Foy”