Gold is a role model, a leader if you will last week it rose hitting a 6 month high. In its role as a leader, some analysts are saying that Gold is telling us that the new team will succeed in turning this recession around, and inflation will eventually follow, which will push Gold’s Bull Market to higher levels in 2009 and into the years ahead. Gold is in a class by itself, as it ended 2008 with a gain and it continued to rise to a six-month high recently in spite of the rising US$. Gold is a barometer for the world’s financial stability, it is considered real money. Cash is king in the current cash strapped environment, and Gold is the ultimate cash vehicle becoming a alternative to holding cash and it’s showing the growing mistrust in the US$. Investors feel safe holding Gold because it does have real value and it is widely believed that with the US economy contracting at the fastest pace in 27 yrs (the most in 4Q since 1982) uncertainty will continue keeping Gold strong. Technically Gold’s ongoing bull market turns 8 yrs old this month. The 8 yr mark has been a consistent low time for Gold going back to the late 1960s when Gold began trading in the free market. Important lows vary from 7 years to 8 ½ years following the previous low, with the average being eight years. This recurring pattern indicates that the low could have been last November’s low, three months shy of 8 yrs. The long side would be a low this summer. The point is that Gold is near or at an important low time. This means that buyers will be buying on weakness (dips) this year speculating that it is reaching for a record high.
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