Source: GoldSeek, Puru Saxena (10/8/09)
"It is our contention that this breakout is the real deal. . ."
It is our contention that this breakout is the real deal and the pathetic action of the U.S. Dollar Index supports our view. Rather than rally, the American currency has embarked on another southbound journey and this is extremely bullish for gold. Also, the recent zoom in silver and precious metals mining stocks is further evidence that this breakout is not a head fake. Figure 1 highlights gold's recent breakout. As you will observe, gold's bull market has been punctuated by lengthy consolidations and this is the third time gold has broken out towards the end of the third calendar quarter.
Figure 1: Gold Is About to Shine!
If history is any guide and the trend consistency is intact, this rally will continue until spring next year and we could see a 40%–50% advance! Should this rally materialize, the mining stocks will go ballistic and silver will rocket above its previous bull-market high.
We suggest you hold on to your positions in the precious metals sector and add more capital.
The long wait is finally over and precious metals bulls are about to get rewarded! We plan to hold on to our positions for several months and will consider booking profits when we see an epic blow-off early next year.