The "Mom" Barometer

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Case in point our mom isn't interested in the markets. But recently for the first time in years she asked us about gold hitting a new high because she read about it in the local newspaper....This "mom" barometer is a good one and you can bet that others are now looking at gold too. New highs attract new buyers, propelling the market quickly higher.

"The major trend is clearly up and it's strong. The fundamentals are solid, the technicals look great and as long as that's the case, gold is headed much higher."

Gold surged above $850 to new record highs as the new year began. This is exciting but gold could become even more exciting now that it's in uncharted territory.

GOLD: The little known jewel...

Most investors haven't been paying much attention to gold. Even though it's gained 28% consistently each year on average since 2001, the mainstream generally hasn't noticed.

Last year was not an exception. Gold gained 33% in 2007, which was almost five times the gains in the Dow Industrials. But surprisingly, the majority are still focused on stocks. We think that's going to change, probably this year.

Record highs always attract attention. When this happens, the market will usually start getting more media attention, investors take note and they start asking questions.

Case in point our mom isn't interested in the markets. But recently for the first time in years she asked us about gold hitting a new high because she read about it in the local newspaper.

This "mom" barometer is a good one and you can bet that others are now looking at gold too. New highs attract new buyers, propelling the market quickly higher. It's very likely that gold's upward momentum will now continue to build and if it does, it wouldn't be unusual for gold to approach $1000 in the current upmove.

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