Strong, Steady Accumulation In Gold

From time to time we put a chart on the blog to give KWN readers globally a look at the big picture in the gold market. Besides helping professionals and private investors look at the big picture, this also helps to eliminate the noise that is so prevalent in the mainstream media regarding gold. This outstanding chart was sent to us by a listener out of Singapore, and is a classic look at stage II action inside of a secular bull market.

Click on chart to enlarge

The beginning of the chart dates back to December of 2008 and shows the action through Friday’s close in gold. Notice the steady advance and distinct channel patterns (marked by the trend lines) located inside of a larger accumulation pattern on the chart.

As you can see from the chart, while it is possible to have a pullback, more importantly there is room for this rally to extend on the upside which is what James Turk, Ben Davies and I have been communicating to King World News readers and listeners globally for quite some time now.
We have had many top callers for quite a while in the gold sector, but the bull market has left both them and those who listened to their counsel in the dust. This is what bull markets do, as Richard Russell says, ‘they shake people out of them.’ In the end, sadly, bull markets take as few investors with them as possible.

Don’t be one of those left behind, be patient and hold on for the mania. For those accumulating physical gold and silver each month, keep making purchases and don’t try to time these types of markets.

For the professionals, be wary of top callers and remember, it is much easier to trade a bull market on the long side buying dips and selling rallies. As I have said on the air for many years, “If you make a bad entry point on the long side, the bull market will eventually rescue you.”