Gold Forming Huge Long-Term Cup And Handle Flag Pattern

Gold Is Forming Pattern

It was the late 90's and I was graduating from high school and at that time the US dollar and stock market were quite strong as we were in the midst of the dot com bubble. Looking over the charts with my Dad who was a trader since the 30's we saw a complete lacking of investment in gold and the junior mining explorers after the 1997 Bre X scandal.

Gold CAD Weekly Chart

Gold went below $300 an ounce and there was no money funding the explorers. The stocks drifted lower to pennies per share. That is when I decided in my late teens to dedicate myself to this sector as I expected another gold rush. One thing you know is that gold and silver always comes back.

I went to the Mining Conferences in NYC investing in the sector and started studying metallurgical and chemical engineering when guys like Rob McEwen and Rick Rule were still relatively unknown. Then as gold turned higher following the terrorist attacks while I was in college, my little penny stocks went to dollars and some got bought out and became part of majors.

Incidentally, right now gold has been basing for almost 7 years while the majority of short sighted investors chase momentum into bubble like areas in financial stocks, tech and housing despite the record valuations and despite the warning of a market that has been on its longest run since the roaring 20's which preceded the Great Depression.

For many months we have been warning about increased volatility and the rising risks of additional flash crashes as the Fed raises interest rates. I am still following that thesis and expect gold to once again come back into favor as delinquencies rise and foreclosures increase.

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