Neil Charnock

The gold bull is just taking a giant breather during a very long bull market, which is the good news.

To state the obvious, gold and the Australian gold stocks had a terrible year in 2013.

The Australian gold sector (XGD) is selling today (intra-day) at a record 53.56% below its 200dma.

The gold bull is in a deep correction phase, the first in the 1999 to 2013 bull to date.

The gold Bull Run of 11 years (“IT”) is still happening; make no mistake about that.

I am not preaching to the converted however most if not all readers will know that the US banking system is in trouble as evidenced by QE1, QE2 and now suggestions of QE3.

The expected break out on gold stocks failed to eventuate in 2011 as market leader NCM headed south during September. Most gold equities here finished the year weak and ready for a bounce. The elite stocks held in our Educational Portfolio (as higher weightings) did exceptionally well however, yet the sector performance dragged back the overall results for 2011.

If I told you that we have a number of gold stocks breaking new highs at the moment in this market would you sit up and listen?

Gold has roared an assertive “here I am” as a wider group of investors realized the problems in the financial system were worse than they previously thought.

The fall into that “Elusive Abyss” has been averted once again thanks to action by the ECB and the Fed. The Fed has just offered a new QE (QE = quantitative easing) program, technically speaking that is…..