This chart courtesy Federal Reserve Bank of St. Louis shows the MZM Money stock continues to rise.  In the past four years the Obama administration, in concert with the U.S. Congress, has added five trillion dollars to the U.S. Federal debt.

At the same time five Central Banks printed seven trillion dollars in new currency.  Thus twelve trillion dollars that did not exist in 2008 are now looking for a home.  This monetary destruction produces price inflation (after a lag - as it takes the average person a while to catch on).

“Like gold, US dollars have value only to the extent that they are strictly limited in supply.  But the US government has a technology called the printing press that allows us to print as many dollars as the government wishes, at essentially no cost.”  ...Ben Bernanke.

Featured is the weekly gold chart. Since the gold bull market began in 2002, there have been three major corrections.  The first one began in 2006.  It took 71 weeks before a new record high price was established.  Gold then rose by 50%.  The next correction began in 2008.  77 weeks later gold established a new record high.  Price then rose by 90%.  The current correction began in 2011.  It has been 72 weeks since the last time gold was at a record high price.  In five weeks we will have matched the 2008 price dip duration.  As long as the four ‘drivers’ mentioned above remain in place, the expectation is that gold will continue its overall rise in price.  To take advantage of this trend it behoves us to ‘BUY LOW SO WE CAN SELL HIGH.’

This chart courtesy seasonalcharts.com shows the seasonal pattern of the price of gold on a monthly basis.  Historically gold moves higher during January and February -especially when the price has dipped during December, (as it did in December 2012).

This chart courtesy Chartsrus.com shows the amount of gold that is moving through Hong Kong into China.  Last month 63 tons of gold moved into Chinese vaults.  According to ZeroHedge.com 90.8 tons moved into Chinese vaults in November.  This was the second highest gross import number of 2012, double the 47 tons imported in October (which many saw, incorrectly, as an indication of China's waning interest in the yellow metal), and brings the Year to Date total to a massive 783 tons of gold.

Featured is GLD the gold bullion ETF.  The Accumulation/Distribution line is at the top.  Usually, when price drops while the A/D line rises, pressure builds on price to follow the A/D line.  The supporting indicators (green lines), are positive.  The 50DMA is in positive alignment to the 200DMA (oval).  A breakout at the blue arrow will be the first sign that a new uptrend is underway.

2001 = + 1.96;  2002 = + 24.8%; 2003 = +19.5%; 2004 = +5.35%;

2005 = +18.36%; 2006 = +22.95%; 2007 = +31.34%; 2008 = +5.14%;

2009 = +24.3%; 2010 =+29.8%; 2011 =+14.2%; 2012 = +6.9%.

The average is 17.05%.  Please note that the % rise in every year below the average of 17.05% was followed by a year where the rise was higher than the average.   Odds are (no guarantee – just odds), that the 2013 increase will exceed 17.05%.

Featured is the weekly silver chart.  The uptrend is clearly defined by the blue trendlines.  A breakout at the blue arrow will be the first sign of a new ‘leg up.’

Featured is PSLV the silver trust.  The Accumulation/Distribution line is at the top.  Usually when the A/D line rises, it puts pressure on price to follow, as happened in August.  As long as the AD continues to rise, the expectation is for price to follow.