Gold continues strength

About five years ago I recall a financial speaker, talking on a radio program, stating that the true bull market for GOLD will have started when Gold was advancing against all currencies.

I suspect that many years from now the bull market will be said to have started in 2009.

The view back shows a divergence, which might lead to a thought that the yellow metal had only a short run for the time … in 2008.

Then, like a turning tide the wave has shifted.

Currently Gold is only showing weakness vs the Australian dollar. Though only a minor weakness at that.
This may be due to the Australian economy demonstrating that it can perform as more than a commodity dominant one, with some robustness in manufacturing and expansion into financial arenas. Whether this current robust condition can be maintained in the face of continued devaluations of nearly all other world currencies is unknown. The elections in progress in Australia have not yet shown what the new face may be like.

The trend showing the “breakout” is best seen on the following comparison chart vs index. The clear line of ‘unison’ can be seen from September 2009, the real ‘break’ from the marketplace is due to happen over the summer and autumn of 2010.

For those seeking to preserve capital, a conservative approach over the coming months will be to shift a percentage of your holdings into physical gold. A common recommendation I have heard is 5-10%, some have spoken of having as high as 25% in gold over the next few years, as the money supply explosion is likely to have an effect on gold demand.

If you have been searching for ways to acquire physical gold and not satisfactorily getting the yellow metal, contact me via info ‘at’ and I can show you how this can be done at spot (or very near spot) prices.

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