$GOLD Monthly

Vociferous claims that gold was caught in downside momentum are grossly exaggerated, since there's not really much to speak of.

But claims that upside momentum will lead to a mania are perhaps overstated. In terms of RSI, the bottom was seen in June. But all you hear from the fringe is that a mania is certain to happen.

We are entering into the last phase of the bull market, the '5' wave. A '5' wave in a Wave One extension is normally the smallest wave. People betting that a mania will now happen are almost sure to be dissapointed.

A mania can still happen, but with a looming sell-off in the major indeces, the upside is probably going to be muted. In a mania, the price rockets and then corrects very sharply, cutting back on all of the gains.

@$1500/oz. CAD, we are probably at a long term average going forward.

GBN.V is stuck between a rock and a hard place, because they expended so much effort at looking like clowns, that they're going to have a serious and intractable problem in front of them with only 2 years left in the gold bull, and having to take advantage of the advance in the gold price, and still provide investors with a return.

http://scharts.co/18SFo10

-F6