I know, I know, you have heard it many times before. Whether from the television or noted pundits, you are bombarded by media urging you to buy gold. At times it has gotten so inundating that I have even made fun of some gold bugs. But right here right now, it may REALLY be time to buy gold this time. Why? Price evidence.
The chart below tells the story. This is a monthly chart of gold prices over the last 16 years. The run to the highs and a Tweezers Top in 2011 stands out like a skyscraper with antennae at the top. Gold consolidated through to mid 2012 and then reversed to the downside. It made a low in late 2015, after retracing 50% of the 9 year move higher in just 3 years.
Since that low, gold pushed up to a peak at about 1375 per ounce last summer. It stalled there as it passed over its 50 month SMA. A pullback ensued that found support in December just over 1100. Since December it has gone higher and is now back near that summer of 2016 high. A push over 1375 would establish a higher high, following a higher low, an uptrend.
Not far from there, a further rise over 1400 would clear the initial consolidation after the sharp decline into 2013. A Measured Move gives a target on this leg to the upside to 1455. If it gets there or anywhere over 1400 there will be many buyers. I am putting some in the IRA today. Not in the form of a Bugatti like Flo Rida, but the Gold ETF SPDR Gold Shares (NYSE:GLD).
DISCLAIMER: The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.