I've mentioned my fondness for the work of Gary Savage on a number of occasions. Day by day, as I've read his work and looked at the charts, I have come to move over to the side of the gold bulls which Gary proudly inhabits.
I had a couple of reasons for being bearish on gold. One of them is that, looking at the $XAU and $HUI, it seems they are both against some formidable challenges given how far they've come and how much overhead supply there is. Here's the $XAU as an example:
The other reason is that I do put a certain amount of stock in the folks at Elliott Wave, and they've been tooting the "gold is heading to under $700" horn for many weeks now.
But one can't really argue with gold's persistent strength. And I put that in bold, because it seems to be standing out these days with respect to being able to climb in the face of the diminishment of other assets (oil, stocks, financials). Just look at these two:
GOLD in particular (as I tweeted a couple of days ago) has been remarkable, having reached lifetime highs the past couple of days. A challenge for me is to be able to buy anything at a new lifetime high, but I've been doing this long enough to understand that new highs often beget more new highs.
Finally, although I am a chartist to the death, I do respect Gary's macroeconomic rationale for believing in gold. It makes sense, to me, at this point in economic history.
