Very impressive. Gold prices move from $300 to $1300 on around 10 years. Actually, up to now, I still looking for the answer of this change. Unbelievable!
A 20% correction (300) is not out of the question. I would be surprised if we get it at this level as Fed appears helpless at this juncture and must resort to propaganda.
http://finance.yahoo.com/news/Group...tml?x=0&sec=topStories&pos=main&asset=&ccode= Will more people be heading for the exits based on this when trading resumes?
No, it's just a natural shakeout after a one-way move from 1160 to 1388 with barely a pullback. Markets rarely go up in a straight line, there is normally some backing and filling as weak hands and hot money pile in and then get stopped out.
If you call a 400% price increase in 3 years similar to an 80% price increase in 3 years, then yes. Otherwise, not even close. A similar 5-fold appreciation over 3 years would imply gold from $700 in late 2008 to $3500 by the end of 2011.
Ivan posts longer timeframes thereby making the curve steeper (more 'parabolic'). This move from 1000 to 1430 began with a breakout from a truly massive H&S. A correction to 1220 or so would'nt indicate a trend reversal.