where's skol?, page-36

Poor old Skol. Never mind.

I believe we are now on the move to $US2800 gold by June 2013.
The break above the descending trendline on Friday was very significant. It was a 3rd fanline and it was a daily, weekly and MONTHLY close above it. This signals the end of the 5th "Great Consolidation" of the PM bull market. It was no surprise then, that SLR was up over 9%; CCU was up 10%; OGC was up 6% today.

That $US2800 number is not a guess. There is a little bit of science behind it that involves the exponential algorithm connecting the major peaks so far in the 11 year bull market. This algorithm also points to $US5000 gold in 2016.

Going forward I would expect a series of sharp 1 or 2 day rises followed by 3-5 day retracements. This will leave the most people on the sidelines and afraid to chase price higher. It is a sad fact that the bull market will leave "The Muppets" on the sidelines until the "hand-off" at the end.

Whilst Skol quotes dubious comparative returns, the assumption is that traders (or even investors) hold a static portfolio. Not so. I was adding to SLR & OGC back in May at 2.36 & 1.80 respectively. With SLR around 3.50 and OGC 2.50 a mere 4 months later, that is a bit better than holding TLS for a year.

I still have the SLR shares I paid 20c for - not selling before they are a "50 bagger".