This Hasn't Happened to Gold in Over a Decade

Phoenix Capital Research's picture

The next leg up for Gold is officially here.

Gold has broken out of the mother of all triangle patterns established by the long-term bull market trendline established in 2006 and its seven-year descending line from the 2010 peak.

Of course, things won’t be moving in a straight line from here. But the upside target for this formation is well north of $3,000 in the next few years (again, remember this formation took over a decade to form).

We get confirmation of this from the Gold Miners to Gold ratio (GDX: GLD). Think of this as a measure of Gold beta as Gold Miners typically lead the precious metal during major moves.

With that in mind, consider that the Gold Miners to Gold ratio has broken out of a bullish falling wedge pattern running back in 2007. This is MASSIVELY bullish and predicts the ratio moving to 0.45.

Put another way, Gold is going to be moving sharply higher. And Gold Miners are going to be going through the ROOF.

If you’re not taking steps to actively profit from this, it's time to get a move on.

We just published a Special Investment Report concerning a secret back-door play on Gold that gives you access to 25 million ounces of Gold that the market is currently valuing at just $273 per ounce.

The report is titled The Gold Mountain: How to Buy Gold at $273 Per Ounce

We are giving away just 100 copies for FREE to the public.

As I write this, there are 59 left.

To pick up yours, swing by:

https://www.phoenixcapitalmarketing.com/goldmountain.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 

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T.Gracchus's picture

The Chinese must be so pissed knowing that their 34,000 tonnes of gold will al have to be given away as scrap, once bitcoin reaches its pinnacle of glory.

Escapeclaws's picture

What, no candles, no bullish engulfings?

You wouldn't know from it.

dark fiber's picture

That index you are looking at is not gold.  It a paper trading index pretending to be gold but has nothing to do with it.  BTW in today's central bank dominated markets technical analysis is useless.  For gold make that useless times ten.

Rodders75's picture

Good commentary here.

http://allstarcharts.com/premium-deep-dive-gold-silver/

  • Gold is not in a downtrend, but in more of a sideways longer-term trend. I think we can see 1380 again, but I think it’s capped there for now. From the downside, as long as we’re above 1200 then I think approaching this from the neutral or long side is best. Not short.
  • If Gold Miners $GDX are able to break out and hold above these downtrend lines, both longer-term and short-term, it would be incredibly constructive for precious metals as a group.

  • Some stocks worth looking at are: $NEM $RGLD $PASS $IAG
  • From a relative strength standpoint, Gold is still in downtrend relative to the S&P500 and Copper. So changes in these trends would be a bullish catalyst for sure that we still haven’t seen

 

Golden Phoenix's picture

NEM shows the development of what appears to be a bullish pennant since the beginning of August. Judging purely by the historical range though half of the move may be over but if gold actually is breaking out maybe the range of NEM will too.

Watson's picture

This is what has happened with gold. You may not like it.

For a long time it traded between 200 - 350 USD.

It then got into a standard-bubble, finishing around 1,800.
It quickly dropped the standard-bubble 1/3 from the top, to around where it is now.

The only reason the price hasn't fallen much further is a combination of a world financial crisis,
and a reduction in interest rates to very low levels that might have stoked general price inflation.

However, if low interest rates haven't caused general price inflation to go into a real tear by now, it's not going to happen anytime soon.
I suspect that is down to excess manufacturing capacity all over the world, particularly China, the factories being full of robots or (very) cheap workers so the marginal cost of production is near zero.

If you bought gold in the 200-350 range, you have done well.
Buying it at current levels is, IMO, a serious mistake.

Watson

McDuff71's picture

...definitely the inverted golden gerbel pattern on that chart - a stunning reversal !! Hazaah!!!

Yars Revenge's picture

That isn't that great of a triangle pattern.

Dragon HAwk's picture

What will an OZ of Gold buy you down in Venezuela.... BTW

Azannoth's picture

You'd probably get a bullet in the head for it

. . . _ _ _ . . .'s picture

Palladium is the only PM left with any serious short-term upside.

83_vf_1100_c's picture

  Squiggly marks and red lines. I could do that. I should of went to biz school and opened up my own newsletter.

meterman's picture

Now Summers

Soon these guys:     

Ted Butler

Gerald Celente

John Embry

Marc Faber                       

Bill Gross                          

Andy Hoffman

Bill Holder

William Kaye

Doug Noland

Harry Organ

Raoul Pal                         

Rick Rule

Richard Russell

Jim Sinclair                    

Ed Steer                            

Bix Weir

Jim Willie

 

 

ProstoDoZiemi's picture

Crypto is here to stay, the digital gold so to speak... why.... no one can agree how to tax it yet without getting into a dick fight, IRS will try to supercede anyone that questions the first tier authority but until then cryptos as safe havens

grizfish's picture

So, Mikey Meterman, which govt exchange do you work for?

Only the govt knows for certain that analysts will be wrong in the future.  Not difficult to predict.  I have been following this situation since before 2006 when Ted Butler reported about the LME (London Metals Exchange) default on Nickel.  Govts can short with impunity because it's all rigged, at least until the BRICS do something about it.

honestann's picture

Yeah, right.  Buy gold in the ground for $253 per ounce... then spend $1200 per ounce to dig it out and process.  That is, assuming the local predators-that-be will even let you, and assuming they don't massively raise their cut once production gets into high gear, and assuming lots of other risks go your way.

Unknown Rider's picture

Quick, before the price gets away; print a few more tons of paper gold.

Antivenom's picture

I'm long IAMGOLD, seen a 25% profit in the last month, when I bought it on the N Korea nonsense.

Bubbles17's picture

My absolute favourite gold miner today: Kirkland lake Gold KL.V  Very high concentrations and the mine that just keeps giving...

 

DC Beastie Boy's picture

So it's a rising wedge on price and falling wedge for miners?

That means Au price will fall and stocks go up if you're into TA.

Mementoil's picture

It's not a falling wedge on mining stocks.
It's a falling wedge on the mining stocks vs. price of gold - in other words the outperformance of the miners relative to gold.

HillaryOdor's picture

It's not a rising wedge.  It's a triangle aka pennant pattern, sometimes also called flag although that's slightly different technically.

LotUnsold's picture

What about the other triangle of 18 months ago?  It broke out of that one too.

I'd love to have a business like Phoenix Capital where I could get it wrong every week and still stay in business.

grizfish's picture

Don't know anything about Phoenix Capital, but my gold and silver stocks are up over 200% since Jan 2016.  YMMV

sodbuster's picture

First Phoenix- now if Gartmann will call it, we can sell with both hands!!

globozart's picture

Same problem for me. When I saw PC reporting it, oh my it's over.

Well it was nice while it lasted...

assistedliving's picture

Please send my FREE COPY of  The Gold Mountain: How to Buy Gold at $273 Per Ounce   to Madame Yellen

atomic balm's picture

Please send my FREE COPY of  The Gold Mountain: How to Buy Gold at $2730 Per Ounce   to Madame Yellen

lasvegaspersona's picture

We are VERY low on electrons so we can only send out 59 more copies!!!

kommissar's picture

just empty your bit bucket.  that will change the input impedence of the output transmogrifier, thus accellerating the resulting output ratio resulting in a fourfold increase in number of deliverable copies.  see?  wasn't that easy?

ZeroLounger's picture

Haven't you heard?  It's just the SAME electron moving back and forth through time.  So, no electron shortage, really. Maybe a shortage of time?

Zero-Hegemon's picture

Perhaps they ran out of internet

The Real Tony's picture

I hope the gold monkey-hammerers don't read this.

johnjkiii's picture

This "Isn't Happened"??? It really never didn't happen.

phatfawzi's picture

is this a PSA or a paid AD?

giovanni_f's picture

All your happen is belong to isn't.

phatfawzi's picture

and if you bought gold a decade ago you're still down on your investment. And the BS about hedging against inflation, how has that worked out. 

DownWithYogaPants's picture

Oh how limited that's going to sound when the dollar busts ala Jim Willie.

phatfawzi's picture

i use to read his stuff 10 years ago. jackass news letter. He's been predicting the end of the $ since then. 

Dame Ednas Possum's picture

10 years!!!!

Fucking incredible huh?

To think... Jim Willie has been correct for that long.

And all this time you've just been strumming your dick like a chimpanzee with fleas.

phatfawzi's picture

and thats a great line, did someone call you that on another board and you raced here to post it like your own. 

phatfawzi's picture

you're such an intellect. Can't you make your argument without the name calling. Just because i read his stuff doesn't mean i subscribe to it. But sorry for the past 10 years he's been predicting the end of the dollar and i think he's been wrong the whole time on his calls. if you had followed his advice on gold, how have you fared? you wan't to buy gold go ahead who's stopping you. Am i not allowed to have dissenting argument or are you a little snow flake that melts whenever you hear any negative comment about gold. 

Jimbeau's picture

Well... didn't YOU expect this house of cards to collapse by now?... or were you one of the geniuses who honestly thought the negative-interest paper fairy tale could last for years?

phatfawzi's picture

i agree with everythinig you're saying but fighting TPTB is a waste of time. If the dollar collapses so will their power, they will keep it up no matter what it takes. 

phatfawzi's picture

the world has moved to Cryptos, they deliver everything that gold bugs promise. As the kinks are worked out in the next few years, gold will be good for nothing more than jewelry.