closed this past Friday $1.50 lower than the week before, ending gold's
streak. What streak was that?
on August 28th, gold rose six weeks in a row. Gold scored an average weekly
gain of 2.1% per week during this streak. So it is remarkable that gold
closed this past week only $1.50 lower. I view it to be a sign of underlying
six weeks in a row is a remarkable and rare achievement. There have been only
seventeen previous instances when gold rose six or more weeks in a row since
trading began on the Comex 32 years ago. Thus, winning streaks like the one
just racked up by gold happen on average about once every two years, but
interestingly, this latest streak is the third one this year. The two
previous streaks were seven weeks each, and ended on February 23rd and April
streaks in the same year? It is in my view another way of saying that gold's
bull market is alive and well. The following chart is saying the same
is trading as if there is a lot of money waiting on the sidelines to buy the
dips. We saw evidence of that this week. Every time gold was beaten down into
the $720s, it quickly bounced back.
these buyers on the sidelines become impatient, they may cause gold to begin
another multi-week advance. Thus, another streak beginning soon is entirely
$800 target for this year seems well within reach. But regardless whether
$800 is hit this year or next, all the evidence suggests that $800 will
indeed be reached.
is still undervalued, and the demand for physical gold is increasing as
monetary problems continue to worsen. The dollar and other national
currencies are suffering the fate of all fiat currency backed by nothing but
government promises - inflation.
has risen five of the last seven weeks. So it too is doing well, but the
gold/silver ratio has not changed much since August. It took 56.5 grams of
silver to buy one gram of gold on August 28th, and it now takes 55.4 grams to
do the same. This ratio will continue to fall as the precious metals move
higher, meaning that silver will outperform gold.
James Turk is the founder
of GoldMoney (www.goldmoney.com) and the co-author of The Coming Collapse of
the Dollar (www.dollarcollapse.com). Copyright ©
2007 by James Turk. All rights reserved.
Copyright © 2008. All rights reserved.
Edited by James Turk, email@example.com
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