Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Stock Review : Markets : News Wire : Quotes : Radio : Silver : Stocks - Main 
  
 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

GoldSeek.com Radio: Eric Sprott, James Turk, Dr. Stephen Leeb, CEO Brendan Cahill, and your host Chris Waltzek (encore show)
By: radio.GoldSeek.com

Thoughts from the Frontline - Time to Put a New Economic Tool in the Box
By: John Mauldin

Goldman’s Bearish Gold Call Tired, COMEX Swap Dealers Squeeze-Vulnerable
By: Gene Arensberg

Gold and silver set to shine on geopolitics and US GDP next week
By: Peter Cooper

Gold And Silver – Use “Magic” Of Gold/Silver Ratio To Greatly Increase Your Physical Holdings.
By: Michael Noonan

Gold Seeker Weekly Wrap-Up: Gold and Silver Spike Back Friday But End Slightly Lower on the Week
By: Chris Mullen, Gold-Seeker.com

Derivatives: Abuse, Props, Risks
By: Jim Willie CB

COT Gold, Silver and US Dollar Index Report - July 25, 2014
By: GoldSeek.com

INDIAN SILVER IMPORTS: Near Record At A Quarter Of Global Mine Supply
By: Steve St. Angelo, SRSrocco Report

Gold’s Strong Season Starts
By: Adam Hamilton, Zeal Intelligence

 
Search

GoldSeek Web

 
Barron’s Gold Mining Index To Double Over The Next Couple Of Years?



-- Posted Thursday, 15 March 2012 | | Disqus

By Hubert Moolman

The behaviour of gold stocks during this gold bull market is really not that different to the gold bull market of the 70s. It was not until almost the end of the bull market (in 1979) that the gold stocks really started to take-off. Those who think gold stocks will not rise during this bull market will be disappointed, and need to consider the evidence presented here.

Below, is a long term chart (from sharelynx.com) for the Barron’s Gold Mining Index (BGMI):

On the chart, I have highlighted two fractals (or patterns), marked 1 to 6, which appear similar. What makes these two fractals so special is the similarity of the circumstances in which they exist.

Both patterns started where the Dow/Gold ratio peaked, as well as where the gold bull markets started.

There was a significant peak in the Dow (1973 and 2007) between point 1 and 2 of both fractals. Both peaks in the Dow came about 7 years after the peak in the Dow/Gold ratio. After point 2, on both fractals, the oil price made a significant peak (1974 and 2008), about 8 years after the peak in the Dow/Gold ratio.

Based on the fractals on the chart, we could still have more than two years before we could get a top in the BGMI, like we had at the end of 1980. That is more than 14 years after the Dow/Gold ratio top (beginning of 1966 to the end of1980 vs the end of 1999 to some time in 2014).

If you compare the two patterns, then it seems we are currently just past point 6, which is similar to the beginning of 1979. The correction since the beginning of 2011 is in the closing stages, and price should advance significantly over the next couple of years. If the patterns continue their similarity, then we should expect the BGMI to reach levels more than double its current peak.

In a previous article, I have illustrated why current levels could be a good time to buy gold stocks (HUI).

For more of this kind of analysis, see my Gold Stocks  Fractal Analysis Report ,or subscribe to my premium service .

Warm regards,

Hubert

“And it shall come to pass, that whosoever shall call on the name of the Lord shall be saved”


-- Posted Thursday, 15 March 2012 | Digg This Article | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2014


© GoldSeek.com, Gold Seek LLC


GoldSeek.com Supports Kiva.org

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.
OilSeek.com