Peter notes that the 200 day moving average has been breached before and as we found out along the way the gold bull was far from over. There is a real and fundamental reason gold is moving higher globally. The reason remains unchanged, therefore the trend will remain unchanged. there is no solution to the problem other than to let nature takes its course. Government will do what it has to do, the Fed will do what it is designed to do, and the market will do what it has to do. The government will spend, the Fed will inflate, and the market will seek a reference point for the purpose of preservation of wealth. Gold is becoming that reference point.
Understand that this system where reference point for wealth preservation becomes gold does not happen by decree or by purposeful construction. It happens naturally and organically as a consequence of the actions of our government, the Fed, and the markets. Gold will continue to emerge as the market increasing turns to it to preserve wealth. The 200 day moving average is a good indication of something, and it isn’t that the problems are solved and paper bank credit can again be trusted to preserve wealth. It simply is an indicator that says a wonderful buying opportunity for physical gold is at hand.