Sorry about all the posts lately, but the charts have become interesting all of a sudden (why I bought back in recently) and I thought the following was well worth sharing.
Very good interview with Don Coxe on a long term perspective to gold and bonds. Bonds in a 32 year bull market. Gold was in a 20 year bear until 2000 when it began its 12 year bull run. Gold and bonds normally hold an inverse relationship but from 2000 both have rallied strongly together. That was due to the large level of money printing since 2000. When the bond market eventually reverses its 30 year bull, precious metals should enter their next bull phase as the inverse relationship resumes and gold rises while bonds fall.
These super cycles can last decades as has been the case with bonds. It seems the gold bull might have much further to run than just a few more years when you consider the long term fundamentals. One thing that might bring it to an early end is an exponential move to much higher levels similar to 1980 ($35-$820 in around 10 years). A rise of that magnitude off the $260 low would take gold to $6000. I would prefer to see a sustainable rise over a longer period because the alternative might be ugly for the economy.
POG now 1725.
SLR Price at posting:
$3.32 Sentiment: Buy Disclosure: Held
