Is Gold Turning?

In the East, both governments and individuals are buying ever-larger quantities of gold.

Not only have Gold Eagle sales increased significantly in the third quarter, they are three times greater than either Q1 or Q2:

The eye-opening multi-year chart below shows the net long/short position of hedge funds compared with the gold price.

Massive Shortage Of Physical Gold

Source: www.smartmoneytracker.blogspot.com

Source: http://www.thesilvergoldspot.com

Source: www.moneyweek.com

Source: www.smartmoneytracker.blogspot.com

Will History Repeat?

In contrast to fiat currencies, gold supply has grown by only 1.6% per year. This clearly underscores its relative scarcity!

Hedge funds are desperate for gains and as gold and gold stocks start to rise, I believe that gold stocks will turn into the new ‘momentum class.’

CONCLUSION

The return of the precious metals secular bull market is moving step by step closer and should lead to the final parabolic phase. A new bull market will probably begin in autumn 2015 and could last for 3-8 years or even longer.

Right now it’s not 100% clear whether the bear market is indeed over or whether we are just witnessing another multi-month recovery. But it looks more and more evident that the bottom is in.