“YOU AIN’T SEEN NOTHING, YET”
“GOLDRUNNER: BIG PICTURE GOLD- PART III- GOLD BULL LOG CHART”
In Part I and in Part II, we showed “Arithmetic Charts” of the Gold Bull. On an arithmetic chart the vertical spaces between lines are all the same height. Thus, the true parabolic curve of the rising Gold Bull is much more apparent. Unfortunately, the arithmetic chart is less useful for long-term charting work.
On the “Log Chart”, below, you can see that the vertical distance between the horizontal lines gets smaller as they go up to the top of the chart from the bottom. Thus, the log format of the chart is designed so that a price move between lines is always the same “percentage move” as between any other lines. This tames down the parabolic look of the Gold Bull rise, and price movements look more linear than parabolic. This type of chart is better fitted to show “channels of price movements” based on similar percentage moves.
In the log chart, below, we have included the thick red “master moving average line” that can keep a Gold Bull Investor confident that Gold’s climb is still healthy. You can see that the relationship of the thick red moving average line plays out the same to Gold’s price on the log chart as it does on the arithmetic chart we showed in Part I.
I have included blue channels that bracket price on this log chart, and you can see that so far Gold has remained in the main blue channel on the Log chart for the whole of the Gold
Bull- so far. I say “so far” because around this point in the late 70’s Gold Bull Market, Gold started a huge and sharp move higher that cause Gold to bust up and out of the channel even on the Log Chart. That is the type of move we are looking for with Gold into 2013.
I have drawn a blue channel above the main blue channel that the Gold price is rising in, and both blue channels are the same size and width. The huge price move at this point in the late 70’s caused Gold to rise so severely that Gold’s price drove up and out of the lower channel to rise to double the channel width. What a move! Will it happen again, today? I don’t’ know, but with the Fed having already printed up $1.3 Trillion Dollars to send to Europe and with the probable need to print many more Dollars, today, I do believe such a move is possible. Plus, to date, the current Gold Bull Chart has tracked the late 70’s Gold Bull almost perfectly the whole way.
Just look at Gold’s move, already, though. So many “experts” from banks and brokerages have trotted across the stage on television telling us that “Gold is an old investment relic that pays NO DIVIDENDS!” So what? Gold has risen up over 700% for massive gains since 2001. How many of these $#$$&&^%^&^&^’s have achieved that kind of performance since 2001, besides NONE? Can you imagine the percentage gains if Gold explodes higher to double the log channel in blue from here? Quit watching TV and start thinking for yourself! And, BTW, per the 70’s Gold Bull, a huge move up from here would NOT be the final move up in this Historic Gold Bull.
Link to BIG PICTURE GOLD- PART 1– THE ONLY GOLD CHART THE LT INVESTOR NEEDS
Link to BIG PICTURE GOLD- PART II– GOLD BULL PARABOLIC GROWTH
A much more extensive writing on Gold and Gold charts, where Gold might be going, and when; is linked, below, to Jim Sinclair’s site. You will have to scroll about half way down the page, but the article is there in its entirety.
As we go further in this series on “Big Picture Gold”, we will eventually merge our thoughts with those currently being added in my series on “Price Versus Value” in the series on “Dow Stock Crash.” I’ll post the links to Part I and Part II, below, so that you can start to become familiar with the concepts of “price versus value.”
My article on THE SILVER ROCKET is linked, below
The Gold version.
And finally, if you need a break from all of the negativity, you might want to take time out to read the following story to a younger loved one in the family.
Goldrunner maintains a subscription site that covers Gold, Silver, and the Gold and Silver Stocks that can be found at;
Goldrunner is also in the process of starting a new and free public newsletter that will be delivered via e-mail, called “Goldrunner’s Fractal Corner.” If you would like to receive this newsletter, you can send an e-mail to Goldrunner at [email protected]
For the moment,
Please understand that the above is just the opinion of a small fish in a large sea. None of the above is intended as investment advice, but merely an opinion of the potential of what might be. Simply put: The above is a matter of opinion and is not intended as investment advice. Information and analysis above are derived from sources and utilizing methods believed reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Comments within the text should not be construed as specific recommendations to buy or sell securities. Individuals should consult with their broker and personal financial advisors before engaging in any trading activities. Do your own due diligence regarding personal investment decisions. In the interest of full disclosure, GOLDRUNNER is personally invested in the Precious Metals sector including various Precious Metals and other individual stocks. GOLDRUNNER reserves the right to modify or eliminate any or all positions at any point in time.
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