Gold and Silver
5 April 2013
The funk is not gold and silver themselves, here is why; the old monetary metals have done as well or better than the Dow Jones since their credit crisis lows four years ago.
Look at gold below (Blue Plot) compared to the Dow Jones (Green Plot). Gold has been correcting since August 2011. So if the “bull market” in the Dow Jones is now finally catching up to gold it’s really not the big deal some in the media would have the public believe. After all, gold has closed higher for the year in the last twelve consecutive years since 2000. The Dow Jones has never done that, not even when Greenspan was blowing a bubble in the stock market.
This isn’t going to last forever, and when gold reverses to the upside it will leave the stock market far behind.
Silver (Red Plot) has seen a significant correction for the past two years, but we see that since its last high of the move in late April 2011, the 3.00 line has held now for the third time, at least so far.
Next is silver’s BEV chart going back to 2002. The current correction (E) has been different from silver’s previous corrections. Corrections A-D all saw a