Gold has had a huge run over the past decade. I distinctly remember becoming a full-fledged gold bug in January 2001. I had witnessed the NASDAQ collapse and figured as people lost confidence in paper forms of wealth, precious metals would be the prime beneficiary of that trend of disillusionment. (Little did I know the Fed had a few more tricks up its sleeve.)
Well, we all know what happened to the price of gold since then. It has exploded higher by a factor of seven. But once the price action began to recently resemble what I saw happen to tech stocks in the late 90's and sentiment became so absurdly optimistic that retards like Turd Ferguson and his kindergarten level charts could attract a following, I knew it was time to take an objective and realistic technical look at the yellow metal.
Here's what I found: the real top in the price of gold occurred in early 1980, and all of the price action since then has been either trending lower or correcting higher. That's right, perma-gold bugs and Turdites, the real top in the price of gold occurred over thirty years ago, and for all intensive technical purposes it's been all downhill since then.
Don't believe me? Take a look for yourself...