2011-0116 Weekly Supplement

Gold peaked in 1492 at $2,450/oz in 1995 dollars. Since Columbus discovered America it has been bearish.

The above chart is borrowed from Barrons at this link.

As you can see from the below chart, the Dow Jones Industrial Average consistently out-performed gold since 1895 through 1995.

The above chart is borrowed from Barrons at this link.

As you can see, gold has steadily increased from less than $300/oz since the beginning of this century. That increase correlates very well with increasing debt by major industrial countries. This increase correlates well with rising national debt.

The above chart is published by the Indicant each week.

The Near-term Indicant's bullish blue curve collapsed last Thursday (1/13/2011). That happens periodically only to bounce back. However, that event occurred in 1492 as well. Gold marches to its own drumbeat with directionally intensity that is emotionally based. You will not want to be holding if its price falls below the QTI bearish yellow curve.

The above chart is published by the Indicant on a daily basis.