Big Picture Reveals $2000+ Gold within a few years!
Gold: $858 / HUI: 444
January 07, 2007
It sure has been a week for gold and its shares this first week of 2008. Right from the start gold blasted through its 1980 all time high and the gold shares exploded to the upside as well thereby finally showing some signs of strength after failing to out perform gold for quite a while. Now what can we expect from gold and its shares this year? Is this bull market coming to an end as many of the gold bears want you to believe? Or are we nowhere near an end of this bull market yet? Yes, reading gold market analysis from many different sources can be quite disturbing and confusing for the average gold investor. Remember the gold pundits declaring the end of the gold bull market last year when gold hit $680? Gold was supposed to be overvalued then and bound to correct to $500. Well, obviously the bears were wrong since gold went exactly the opposite way and challenged its old all time high by end of last year.
Since gold slashed its old 1980 all time high people are wondering where to go from here?
Well, it's my strong belief gold will top $1000 this year and a multiple of that in the years to come. Sure enough there will be corrections here and there but the thing is that you shouldn't be scared about them since they could provide excellent 'BUY' opportunities (such as happened on December 18 last year, see below). The thing is to keep the BIG picture in mind. It goes far beyond the scope of this article in order to discuss all critical drivers pointing towards higher gold prices in the years ahead like inflation, supply/demand and an eroding dollar, but I like to highlight a few important charts which you should keep in mind each time the gold bears are preaching a top in gold again.
DOW/GOLD ratio says gold bull market nowhere near its end
Gold's Long Term Inflation Adjusted Average says gold still cheap
Gold/OIL ratio says Gold is a bargain
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