Has The "Gold Mania Phase" Already Begun?

One might think it has, what with CNBC's talking heads whipping up a great future for gold, including Jim Cramer advising his audience to invest now for a predicted run up to $2,000 , TV ads (in the USA) luring in gold for instant cash, etc., one would think that we've indeed entered the final innings of the current ongoing ten year old gold bull market, the "mania phase", much like in the 1970's prior to the January blow-off peak in 1980.

But, are we really there, yet?

I say, Hell no!....Maybe in two or three years from now, but not now!

What's the gold/Dow ratio now? 8:1? Rob McEwen sees it going down to between 2:1 to 1:1.

Ian Gordon, sees the ratio hitting one to one quarter of one percent (1:0.25) in an deflationary depression scenario.

When less that one percent of the total world's portfolios are in gold and gold related investments, whereas in 1980 at the height of the previous gold mania phase, that percentage was closer to 30%, we've got quite a ways to go before we see cues of people wrapped around the block waiting to face a sales person in their local jewelry store.

That's what the last mania phase looked like.

Rod McEwen sees $2,000 this year, and ultimate more than $5,000 gold, while James Turk's shooting for $8,000, Marc Faber once threw out a $36,000 figure for within his life time.

Relax, we're still early to the party.

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