Another Encouraging Sign – Relative Strength
This is really important. It’s probably not a real bull market if you don’t have relative strength. Without it, gold is just reacting to the changing Dollar (or whatever currency you want to ‘value’ it in). The metals need to gain over and above the percentage falls in the dollar. If the dollar drops 10% in the next 6 weeks (which I think it might), then I’d like to see gold go up by 15% and the miners at least double that. Hopefully you’ve noticed the metals holding up and in fact rising lately, with a background of a steady Dollar. My view is that the metals are aware of what is coming next (or at least the big players in the metals are). This is giving us a hint that the dollar is destined to fail at that critical support level (where Surfs ‘dualling forks’ intersect). That is when this thing really hots up. Three charts going back a month or so – first, the Dollar…
Now Gold…
And finally, silver…
Are you seeing what I’m seeing ?
As usual, Northstar, thank you very much, indeed.