Is Gold's Next Stop $1000?

It was in the midst of all the gloom that the price of gold (the Fear Index) hit it's high in 2011 and started sending a new message.  As we cheered early this year when it really broke down, we recognized the black swans were changing their colors.  In the last few months, we've seen that normal consolidation has tried to resurrect the bull market in FEAR, but unless I'm reading the tea leaves totally wrong, we are now seeing the price of fear about to take another nose-dive down to the next support level of $1000 a troy ounce.

You can see the current action a little better in this next chart.  I had thought there was a chance the price of fear might move back to the $1500 resistance line, but it doesn't even look as if it had that much bounce left as it is establishing a steeper downtrend.

I hope you don't tire of my vision of black swans starting to die away in these next few years.  It is a very exciting story as we see the truth lying buried deep in all those mythical stories being given front page attention.

Don Hays

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