Gold Bull"...Two generations have gone by since the late-70s, and during that time people have pretty much forgotten about gold. That long, twenty-year bear market in gold has meant that the public, the funds and the pros no longer have any gold. This makes the foundation for a monster bull market. I believe we're in the early second phase of that bull market now. The second phase is where the public (and the funds) slowly, gradually enter the market. The second phase is the longest phase of a bull market.
There were 44 new highs in mining stocks last Friday. Of these, the following were new highs in gold or silver stocks -- PAAS, CDE. SSRI, FCX, HMY, AU, GFI, MDG, CBJ, GG, AEM, MDG, KGC, GOLD, PDG. Today NEM closed at a new high.
...Gold now well above the 550 halfway or 50% level of the entire 1980 to 2000 bear market. This puts gold in line to test the 1980 record high of 850. There's no time limit on the test of the high.
Gold staying overbought, characteristic of great bull markets. Those who want in are waiting for the correction that a seeming army of analysts are promising is "just around the corner." Meanwhile, the gold bull snorts, tosses his head -- and moves higher. The twin bull of silver does the same...."
January 30, 2006
Richard Russell