Having spent the last 3 months twittling my gold ratio charts in service to the bullish gold miner stance, I have really neglected the nominal price of gold. Actually, I haven't. I know it is there, old yeller, patiently sitting around like a shiny and pretty lump on a log. But it's nominal price has not been important to me as has been its outrageous outperformance to the likes of oil, industrial metals and those wonderful meters of human hope, US Treasury bond yields.So here is the relic having made a nice push back above the monthly EMA 18 which you may recall was our indicator of the big picture health of the previous massive leg of the bull market from the 200's up to a frothy and unreasonable 1000+. By the way, it was only unreasonable because of the quality - or lack thereof - of its 'investor' base, which was made up of a high proportion of river boat gamblers, show-offs, whiz kids and common street hookers (I should probably drop that metaphor because I don't want to sully the relative reputation of these hard working girls by comparing them to certain members of the financial management/advice herd).
While gold's nominal price is not out of the woods yet, its fundamentals are going ballistic in the face of governments' - led by the US' sublime debt monetization schemes - willful assault on their currencies as Armageddon '08 morphs into Bailout Bonanza '09. It will fail. Gold will still be there after it does, sitting like a lump on a log holding value. As for those interested in the 'price' end of things, if EMA 18 holds and the series of declining monthly highs is broken to the upside, gold will be fun as well as secure.
Merry Christmas and/or happy holidays to you and let's have a great new year!
