i believe that once money velocity turns up institutional investors will come into the mining space, ie more institutional investors. the turning up of money velocity will be the signal , inflation is on the rise. food prices have been suppressed for quite some time, rising food prices will be part of the foundation for higher gold prices, i have been watching dba, it could very well have bottomed!? any and all opinions there are welcomed. once it is apparent that inflation is on the rise, miners because of the leverage will be the investment of choice. i saw in the bull of the 70s there were spectacular gains in the sector. its why i spend my time researching which miners are real prospects. we are approaching the gold bull market era. the infrastructure is in place. at present the fed is behind the curve. and they will remain
behind the curve for the duration of the bull.
we did finish a 3 wave down yesterday. was that the whole correction?
dharma
just looked at daily-monthly dba chart and YEAH, looks like a huge wave C from the Feb 2011 high might have ended at late April 19.16 low and we could have 5 up and be completing an abc down in this area. Once caveat is the 5 up is not as clear as I'd like it but it looks more impulsive than corrective IMO. This jives with the muy clear daily 5 up in the CRB from recent lows. Things may be slowly coming together
Senor
so , is your thought that yesterdays, lows, if that was the completion of a 3 wave move , should not be violated?
yes, i looked at the crb and it does look like an impulsive 5 wave move. the dba has an extended 4 and then a 5 so i can see it as an impulse. i am waiting , for the dba to correct more than the .382 . and i believe, as in the 70s , commodities in general will be in bull markets, its a move away from paper to real assets , which are intrinsic value., money. trust in paper will diminish. trust in government will diminish. anyway, i appreciate your postings
dharma