London PM Gold Diverges From Gold Stocks!

This week I was presented with a two graphs showing Gold and Gold Stocks diverging.  JR pointed out that this signals a trend change which holds true as far back as 1999 and charts are simply better at calling correct moves than most analysts.  Holding above 1058 could indicate a move up.  The market had been dropping of recent months and weeks so I was left to wonder if this was the final bottom we had experienced in late June yet not the bottom we had hoped for. 

Then J.R. mentioned something peculiar possibly even a little scary.  NEVER, since London gold had been trading freely (since 1968), has the monthly price ever failed to make a new high over a previous monthly price for as long as it has now.  We have 8 consecutive months without making a new monthly high!  It's just never done that before even after the 1980's top.  This is something historical in the monthly price.  It could mean the price is more oversold than ever before, or it could mean the whole price structure from 1968 is over and we are in a new world (price wise). 

Place your bets now!   I think we are going to see the last low before gold and silver enter a new dimension.  I no longer care about Ben (Buzz Light Year) Bernanke and whether it is Q-Finity and Not Beyond or Q-Infinity and Beyond !

Remember the one simple rule of investing, "If you are feeling euphoric it is time to sell and if you are sick to your stomach it is time to buy!"

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