Tuesday March 27, 2012
Recently sentiment towards gold investing has been quite negative. We now have a pattern of higher lows onthe MACD tracking Central Fund.
And, it is clear that no government intends to re pay its debts but only pile them higher.
Central Fund
The inverse head and shoulders pattern here is clear. Price made a 50% re trace and then bounced the last two days. MACD is sporting a third higher low. So it looks like it is time to scale in positions in CEF. The fund never got to a discount on this pull back, at least I did not see it. Yes the miners are more out of favor but our recent updates show that CEF has clearly outperformed GDX over the longer haul. And with CEF we know what we are buying - gold and silver in Canadian vaults.
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