The Reluctance To Sell Gold

'Twas almost as if listening to oneself on the radio, 'cept that 'twasn't oneself. With that tease, let's first roll back to this bit we penned last autumn when writing from across the pond at our favorite beach-side bistro. You may recall the owner "...whom we've know for better than 30 years, asked me: 'Which do you like better? The Dollar? Or the Euro?' Response: 'The Swiss Franc. And get some Gold as well.'"

Now fast-forward to this past Wednesday's wee hours. Emitting from bedside radio came the voice of one Patrick Armstrong (Plurimi Wealth's CIO) who -- upon being asked by the Bloomy interviewer which was better, the Euro or the Dollar -- responded with one syllable: "Gold." He must have been within earshot back at the bistro. Moreover, he stated that "...risk assets are incredibly expensive..." So at least two of us have figured that out. Once the balance of world also figures that out we'll see Gold move well up the road.

To be sure much of our analytical approach in these missives is technical, i.e. the numbers don't lie, the market is never wrong, and 'tis what 'tis. 'Course we're keenly aware of Gold's massive fundamental undervaluation, underscored by a mere glance at the above opening Gold Scoreboard with price settling out the week yesterday (Friday) at 1325 versus our present valuation of 2862. Further, when technical conditions begin challenging -- if not outright exceeding -- historical trends, we know that something fundamental is afoot. And we need only next glance at the graphic of Gold's weekly bars to see that.

If you've been keeping score of late with us, you counter out there of blue dots know that the millennium's record duration of 26 consecutive ascending weeks has not been eclipsed; but the present run of 23 rising blues dots is now good enough for a podium position, tying for third place in duration since 2001. And yes as we've previously pointed out, the percentage price gain within this stint has not been comparatively impressive, but having witnessed in too many recent years a reluctance to buy Gold, since this past September there now clearly is a reluctance to sell Gold.

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