Classic Chart Of the Current Bull Market In Gold
Please click on the chart for a clearer view. As you can see, the volume and open interest have been increasing with the price of gold for the last several years. This is a very bullish technical indicator. Again I say to all those who haven't bought some gold or silver, please jump on the bandwagon. There's plenty of room. I want you to buy it though on a big correction/pullback if at all possible. I'll leave you with this quote from Richard Russell...
Richard Russell (Dow Theory Letters): A mighty interesting move coming up for gold
"Now that gold is at all-time highs, is there any way to tell where gold might be going? I’m going to repeat the words of W.D. Gann. Mr. Gann is considered by many professionals to have been one of the greatest commodity and stock traders (and thinkers) of all time. Here are Gann’s words (courtesy of my old New York friend, Ron Rosen).
"‘When a stock or a commodity advances into new territory or to prices which it has not reached for months or years, it shows that the force or driving power is working in that direction. It is the same principle as any other force which has been restrained and breaks out. Water may be held back by a dam, but if it breaks through the dam, you would know that it would continue downward until it reaches another dam, or some obstruction or resistance which would stop it.
"‘Therefore, it is very important to watch old levels of stocks and commodities. The longer the time that elapses between the breaking into new territory, the greater the move you can expect, because the accumulative energy over a long period naturally will produce larger movements than if it only accumulated during a short period of time.’
"It took 28 years for gold to break out above it’s 1980 high of 850. In view of what Gann says, this should be a mighty interesting move coming up for gold."