Its all about ‘Zone 2’.

Zone 5 was THE bottom of the 16 year cycle. Zone 4 was when many were in disbelief, and thought gold would head to less than $1000 – I was busy pointing out the cyclical low was behind us and buying miners as fast as I could on every pullback. It was around this time I started experimenting with the ‘golden bowl’, or arc formation.  The zone 4 breakout (bull flag) was something I posted about as the flag was forming. That shot us up into zone 3, and a ‘mid-zone’ consolidation, which I suggested would take us to somewhere between $1700 and $1800. We touched $1700 and find ourselves firmly in zone 2, so is that it ? It might be, but I suspect a final burst on rate cut/stimulus news will send us to $1800 and the top of this zone.

So here we are, what next ? It’s up to the miners and silver now. The ‘golden bowl’ I gave you has pretty much done what I said it would. However, we’re not happy are we ? The miners (where most of us are invested) are languishing. Look at the gold/silver ratio – historic highs. So there it is. Thank you gold, you’ve done it. You’ve got us to the starting line. It’s over to your smaller sibling, silver now, and your family of miners. It’s going to be a rocky handover, and may take quite some time, but that baton is coming your way…