Just a few points to consider here:

1) Of the analysts that ever mention gold, most do so from a bearish point of view, as if gold is only a vehicle for reckless speculation.

2) Of that tiny minority of analysts that are gold bulls, most are short-term bearish right now, with the conventional wisdom that gold has gone too high too fast, and needs to correct.

* I would estimate off the top of my head that 97% of the commentary on gold right now fits into the two above categories.

Now for my point of view, with so many bears out there, who is left to sell? Yet gold carries on higher anyway, and silver is being dragged along for the ride. Lets also make a note that the gold PM bull is being confirmed now that silver has also reached new highs year to date, and is approaching its high for the decade. A real silver breakout to new highs for the bull market will probably trigger that new wave of retail buying.

3) One of the contributors to Bill Murphy's Cafe has pointed out that the bear gold ETF is attracting way more interest than the bull gold ETF. This is a hugely significant fact, since it confirms that most investors right now are thinking gold must go lower and have put there money there. The gold bear ETF sells paper gold into the market as per the number of units that investors are playing. Nonetheless gold has been rising. When those disgruntled losers close the positions there will be buying to cover in the paper market, and that too will add more upside to the gold breakout.

I think we have a long way to go before this move runs out of steam. I am comforted that so few others share my outlook, as it means that this market is NOT overbought no matter what the analysts want to believe. I think we will see a short squeeze develop in the metals and in the shares of some juniors. The high volume off the lows of the move today was probably spec shorts covering after successfully discouraging more retail ECU longs. Too bad for them.

I bought a few more ECU traders today @ 72 cents. I still hold my core.

cheers!

mike