The title of our main Gold commentary last week was "On The Brink Again". Here's how we started off that commentary:
The five highest Comex spot future Gold closing prices for 2002 - so far - are as follows:
Now, let's update those figures for this week:
The five highest Comex spot future Gold closing prices for 2002 - so far - are as follows:
Here's something else to contemplate. It's relevant no matter where you are but especially relevant if you live in the US:
As you probably know, this small graphic (updated daily) appears on our home page. Please take a good look at the relevant column "In 2002". Consider a number of things about the data in this column. Consider the KING HIT which has been taken by ANY foreign investor in the Dow this year, given the percentage fall of the Dow AND the percentage fall of the $US Dollar index. Consider both the losses and the "opportunity costs" of any investor, American or "foreign", who has NOT diversified part of his assets out of $US denominated paper assets into Gold this year. Consider the investments which have compensated American investors for the fall of the Dollar this year. Oil is up 44.4% - Platinum is up 22.1% - Gold is up 19.4%. Silver doesn't come close. So far in 2002, Silver is up from $US 4.57 to $US 4.70 or 2.84%.
Remember the days when US investors were blithely expecting annualised gains of 18-20% "forever" for their stock market investments? In 2002, there have been precious (and we use the word advisedly) few investments which made good on that nebulous wish.
Please, if you haven't already done so, take a good look at ALL the $US Gold charts that we update each week in our Gold pages. Every one of them CONFIRMS the $US Gold BULL market.
There is one chart, though, that is so important that we are going to reproduce it right on this page. This is a MONTHLY semi-log Gold bar chart based on spot future CLOSING prices:
This chart, better than any other, shows the potential for the present $US Gold BULL market. Look at the major trendline, connecting Gold's 1980 all time high (3) with Gold's most recent 1996 high (9). This line has been challenged ever since Gold first broke above it back in May. Now, with this rise to $US 333 on December 13, Gold has broken ABOVE that eight-month "consolidation" phase. In the process, it has left behind the LAST downtrend on the chart. And don't forget, this chart shows almost ALL the Gold "action" ever since the $US 35 per ounce fixed ratio was abandoned in August 1971.
Since the Dollar "floated" in 1971, Gold's biggest bull market has been the one between August 1976 and January 1980, during which Gold rose from $US 102 to $US 850 - that's a rise of 733.3% The smallest bull has been the one between March 1993 and February 1996, during which Gold rose from $US 325 to $US 414 - that's a rise of 27.4%. The present bull market, which has seen Gold rise from $US 255 in April 2001 to its present level of $US 333, is a rise of 30.6% - SO FAR.
We must admit that the "angst" which has been a feature of most of the Gold chat sites over the past six months bemuses us somewhat. It has been apparent ever since Gold first bounced up to the $US 325 level (on a closing basis) during the "Washington Agreement" spike in late 1999 and then retreated, that the $US 325-330 level would be THE level to crack once Gold had finally left $US 300 behind. Please remember, the BOTTOM of the last Gold bull market (1993-96) was $US 325.
Most everyone reading these pages will be aware of the FACT that the financial powers that be have waged a price suppression war against Gold for decades. You will also be aware that this war has intensified ever since the mid 1990s and especially since Gold dipped back below $US 300 in late 1997. We wrote the introduction to this page in January 1996 when these "Gold Pages" were first uploaded to the web. We said the same thing when the first issue of The Privateer came out back in October 1984. And MANY knowledgeable "Gold Bugs" have documented every step of this Gold suppression, as they happened, all the way back to the London Gold Pool of the 1960s.
In train with this price suppression, the global financial powers that be have built a gigantic debt-laden financial pyramid with NO BASE. There is NOTHING out there which circulates as an officially-certified means of payment which is not a PROMISE TO PAY. For more on this see the last issue of The Privateer for 2002 - published on December 15. The world does NOT have a viable monetary system. No matter how huge or imposing the edifice, it cannot stand without a foundation. From 700 BC to 1971 AD, Gold was the foundation. When it was removed, the crumbling of the edifice was just a matter of time, and 31 years is a VERY short time in the life of the history of money.
Now, here's how we finished last week's commentary:
"Given the present economic and financial circumstances, it is the most natural thing in the world that Gold is once again "on the brink". With three trading weeks left in 2002, the "trick" will be to get it OVER the brink - ABOVE the $US 330 level. That "should have" happened long ago. It could happen on any given day from Monday, December 9 onward. All we can do now is wait and see if it does."
We didn't have to wait long, only until Thursday, December 12. The final "proof" that $US Gold IS in a bull market is now in hand. With that, the potential for a much faster price rise in $US terms for Gold increases MASSIVELY.
Don't forget, we began these weekly Gold commentaries in January 1996, less than a month before the TOP of Gold's last bull market. Many times since then, and especially since the Gold bottom developed between August 1999 and April 2001, we have counselled patience. We continue to do so. Take another look at the Gold Bottom chart. You can see by the unbroken up channel that there has NEVER been any reason to sell Gold since April 2001. Take another look at the long-term Gold chart above. You can see the VAST potential of the present Gold bull market which is still just getting STARTED.
There has never been a time in history where the ownership of PHYSICAL Gold did not protect the wealth of the individual in times of financial upheaval and approaching chaos. As can be clearly seen from $US Gold's percentage gains in 2002, this time is no different. If you own Gold (of course you do - don't you?) relax. If you don't own Gold, you had better hurry up.
