-- Posted Friday, 12 March 2010 | | Source: GoldSeek.com
By Hubert Moolman
Since 5 February 2010, the dollar gold price has shifted gears twice with the last shift starting on 3 March and ending on 11 March. We are now in that “sweet spot” gear, and gold is ready to accelerate. From here on, whatever gold is doing to the upside, silver is doing much better.
Gold
Let us talk about gold first. Since 5 February, gold has rallied about $100 from where it has pulled back to $1100, which I think is the launching pad of the next rally. This next rally will be stronger than the previous, which started on 5 February.
The reason for my thoughts above, are mostly explained in my previous article. There I explained that the gold chart is following a pattern similar to the big consolidation since March 2008. It is my believe that the pattern is coming to a stage where a big move up is about to happen, which is similar in nature to what happened on 2 September 2009.
Look at these charts below, and you will understand why I formed this believe.
Above is the latest consolidation with 8 points I have marked (chart generated on fxstreet.com)
Above is the last part of the last big consolidation which ended in September 2009. I have marked 8 points to illustrate how it is similar to our current consolidation. (chart generated on fxstreet.com)
As you can see that the last part of the latest consolidation is similar to a pattern just before the 2 September 2009 action. This will be confirmed when gold breaks through the $ 1125 - $ 1130 level, any time from now to early next week. From here gold should challenge the high at $1226. On another gold note, it is also interesting to see that the Rand gold price is about to break out soon. It is a great time to be a South African gold bug because the Rand gold price is about to start a major major gold rally!
Silver
At this point in time silver is the ultimate currency to be in. Even with gold looking as promising as it is, it is nothing compared to silver. I think, by the time gold has jumped to $ 1500 dollar, silver will have flown past $30.
Silver will now realise its true nature as a currency, a currency that is as good as gold is a currency. The world’s fiat currencies are all sinking and silver and gold is rising. Due to increasing demand for quality means to store value, silver’s investment demand will now start to take centre stage, and this will blast silver past its all time high set in 1980, in the not too distant future.
An investment in silver today, for me, is as they say a “no-brainer”. For me, an investment in silver using Rands is an absolute must.
I have done some fractal analysis for silver and gold based on similar analysis as here and in previous articles. These are more medium and longer term in nature and provide me a “map” of how silver is going past $30 and gold past $1 500. If you would like to know more about this, you can e-mail me (see email address below). You might notice that I write a lot about fractals. The reason is simple: they work if applied correctly.
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May God bless you.
Hubert Moolman
You can email any comments to hubert@hgmandassociates.co.za
-- Posted Friday, 12 March 2010 | Digg This Article
| Source: GoldSeek.com
