Friday, March 14, 2008

Gold: The Chart Says It All

The Chart of the Day notes:

"Gold has been in a strong bull market since 2001 and picked up the pace in mid-2005 and then again in mid-2007. In fact, gold has gone parabolic and today briefly crossed the $1000 per ounce level for the first time. Today's chart illustrates how the price of gold has nearly quadrupled during its seven year bull market."
The chart axes is plotted in a logarithmic scale; thus the tick marks are spaced by percentage. If a logarithmic scale were not used, the graph increase would appear even more dramatic. How much higher can gold move?

(click on chart for larger image)

Another interesting graphic is the Dow/Gold relationship. Additional discussion can be found at my post titled: Dow/Gold Ratio: What The Ratio Might Be Projecting

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