Maund on Gold
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What a terrific start to the year for gold! When you see a breakout to new highs on the 1st trading day of the year like this for a commodity it normally signals further strong gains as the year continues.
Bearing in mind that this strong gain was, of course, largely fuelled by dollar weakness, it is important that we keep one foot on the ground by referring to the gold chart in Euros. However, gold bugs will find the gold in Euros chart to be an additional source of good cheer, as gold also rose to new highs against the Euro. This is a very positive development that augers well for a strong year for gold, and is not so surprising when you stop to think that the money supply in Europe and most other countries is also expanding at a rapid rate - only 2 or 3 weeks ago the European central banks created a cool $500 billion out of nowhere to prop up ailing banks - they are starting to learn the game from the Fed.
The latest gold advance was predicted on www.clivemaund.com and on the 20th December (www.clivemaund.com/article.php?art_id=1550)
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Clive Maund, Diploma Technical Analysis
Copiapo, Chile, 3 January 2008
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Clive P. Maund’s interest in markets started when, as an aimless youth searching for direction in his mid-20’s, he inherited some money. Unfortunately it was not enough to live a utopian lifestyle as a playboy or retire very young. Therefore on the advice of his brother, he bought a load of British Petroleum stock, which promptly went up 20% in the space of a few weeks. Clive sold them at the top…which really fired his imagination. The prospect of being able to buy securities and sell them later at a higher price, and make money for doing little or no work was most attractive – and so the quest began, especially as he had been further stoked up by watching from the sidelines with a mixture of fascination and envy as fortunes were made in the roaring gold and silver bull market of the late 70’s.
Clive furthered his education in Technical Analysis or charting by ordering various good books from the US and by applying what he learned at work on an everyday basis. He also obtained the UK Society of Technical Analysts’ Diploma.
The years following 2005 saw the boom phase of the Gold and Silver bull market, until they peaked in late 2011. While there is ongoing debate about whether that was the final high, it is not believed to be because of the continuing global debasement of fiat currency. The bear market since 2011 is viewed as being very similar to the 2-year reaction in the mid-70’s, which was preceded by a powerful advance and was followed by a gigantic parabolic price ramp. Moreover, Precious Metals should come back into their own when the various asset bubbles elsewhere burst, which looks set to happen anytime soon.
Visit Clive at his website: CliveMaund.com
