Featured is the same chart with the focus on the upside breakouts from beneath the 50WMA.  The blue arrow points to the last breakout in early 2009.  The green line highlights what happened to the gold price upon that breakout.  The green arrow points to a similar setup.

“In the absence of the gold standard there is no way to protect savings from confiscation through inflation.  There is no safe store of value without gold.  This is the shabby secret of the welfare statists versus gold.  Deficit spending is simply a scheme for the hidden confiscation of wealth. Gold stands in the way of this insidious process that stands as a protector of property rights”....Alan Greenspan in 1966. 

Featured is the daily gold chart.  In its simplest form this chart spells ‘MONEY’.  During the last gold bull market gold rose from $35.00 to $850.00for a 24-fold increase.   A similar increase from the low point in 2001 ($260.00), sets up a target of $6,240.00.

“Every minute of every day the central bankers of the world print 2 million dollars worth of currency”.  ...Jim Grant

“Gold is the soul of all civil life.  It can resolve all things to itself and turn itself into all things.”  Samuel Butler (British author 1835 – 1902).

During the ‘Dot-com’ bull market Nortel rose from pennies to $125;  Cisco to 82.00;  Yahoo to $127; and Microsoft to $60.   All four were based on a ‘concept’.  By comparison ‘gold is money!’

This table courtesy Michael J. Kosares show the ‘real rate of return’ of gold since 2002.  The first column shows the steady annual increase and the third column shows the rate of increase after the rate of inflation has been deducted. 

Gold closing price at last day of the year:  2000 = $274; 2001 = $279; 2002 = $348; 2003 = $416; 2004 $ $439; 2005 = $519; 2006 = $638; 2007 = $838; 2008 = $889; 2009 = $1097; 2010 = $1420; 2011 $ 1566; 2012 (so far $1710).