Conclusions

The gold bull market may experience a truncation, where prices are not meant to achieve new highs. A triple bottom is your best indication that gold price are not meant to achieve new highs. So if there's going to be a bear market in equities, and a truncated bull market in gold, the mining shares have to come up with a spectacular value proposition.

When everybody is grabbing at the bullion, mining shares are being dumped. With good reason, none of them have actually made a good value proposition. The balance of the value proposition in the gold sector is in cheap mining shares, not fairly valued bullion, obviously, because they happen to be the producing asset.

Have a good look at the copper price, the presumed bull market has been truncated. gold prices aught to see something similar. Theoretically this means that purchasing power has declined due to the rich man's panic, and place a limit on prices.

Oil prices are a reasonable comparable, since prices, though volatile, have remained in a certain range despite the abosolute certainty that oil was running out. It's abundantly clear that the oil bull market has been over for some time.

The technical basis for the assumption for a rise in the gold price during a bear market in stocks is that gold prices have not achieved backwardation, while other commodities have. Gold prices still have this obvious means to advance going forward.

http://scharts.co/1t0s4mC

-F6