They see $421 as a key support area for gold.
"...This chart compares the Dow Industrials to gold. You can see that since 1919 there have been two major cycles and we're currently into the third. When this ratio rises, the percentage gains are better in stocks compared to gold and when it declines, gold is the winning investment.
"...Note, for instance, stocks were better in the 1920s, 1950s-1960s and 1980s-1990s. Gold was better in the early 1930s, 1970s and now. This mega trend is telling us gold is where our investment focus should be, not stocks at this time.
"...Also interesting, the lows in the ratio have occurred below 2. This also indicates stocks are still expensive and gold is cheap with the ratio now near 25. This means that somewhere ahead, and it'll likely take years, this ratio will probably again get to near 2, which will happen as gold rises and stocks fall. But either way, the ratio suggests the rises and declines are going to be dramatic.
"...Coming back to what's happening now, gold's intermediate decline that started in December is coming to an end. And if gold can now stay above $421, a renewed rise will be underway. This is now providing a good opportunity to buy new positions looking out to the months ahead and to the long-term.
