Goldman Sachs Call Ridiculous, Gold Ready To Rocket

On the heels of Goldman Sachs calling for the end of the gold bull market, today King World News went to 54-year market veteran and analyst Ron Rosen to get his take on the situation.  Rosen sent over six tremendous charts in response to the Goldman call, along with some great words of wisdom.

Below are charts and comments from 54-year market veteran and analyst Ron Rosen:

“In spite of all of the negative press gold is receiving today on CNBC because of Goldman Sachs’ call for the end of the gold bull market, everything is right on schedule.  The timing of this ridiculous proclamation by Goldman Sachs could not have come at a more perfect time.

My projections are for a massive move to the upside in gold for 2013 and 2014.  The Goldman Sachs call will be an interesting footnote after the explosion takes place.  What the analyst is saying is contrary to all natural movements through time.  If you look at the patterns in the charts below you will know where gold is headed.

There were no gold share indexes in the last gold share bull market in the 1970s.  However, Homestake Mines was the gold share that always led the parade.  It was considered a leading indicator for the direction of the precious metal shares....

“If you are concerned about the HUI not performing, don’t be.  The HUI is doing exactly what it should be doing by repeating this pattern from the past.  The following charts show us what to expect in 2013 for the precious metal shares.”

Below is the current pattern for the HUI Gold Bugs Index:

The next chart shows you the pattern for Homestake Mining in the early 70s.  Notice how similar it is to the HUI pattern above.

As you can see from the chart below, Homestake Mining then had a run that began in January of 1973.  The stock tripled in just one year (see chart below).

The next chart shows the completion of the Homestake Mining run into 1974.  In less than two years the stock went up six-fold (see chart below).

Below is a chart of gold from which shows the action in gold during that 1973 to 1974 time period.

A reader sent the following chart to KWN in response to my last interview.  This clearly illustrates the roadmap to a 1/1 Dow/Gold ratio (see chart below).

Final note:  Ari Sussman, CEO of Continental Gold, sent a communication to KWN saying, “This reminds me of Goldman's $200 oil call the same week that oil topped out at $140/barrel.”  Ari is absolutely correct.  Global readers have to learn to use these types of calls as reverse indicators.