From Richard Smith, Founder, TradeStops:
Gold has rallied more than 10% four times in the past 3 years … and yet it has declined 35% over that same period of time. Is the most recent gold rally different this time?
It’s my job to make sure that you’re thinking about things that the rest of the media might not deem necessary to bring to your attention. Let’s take a look at how the major rallies in gold have played out over the last few years.
This chart shows all the +10% moves up in the price of gold over the last 3 years. The chart uses a log-scaled axis. Each of the horizontal grid lines represents a five percent move in the price of gold. Log-scaled charts make it easier to see equal percentage moves in price.
What’s easy to see in the chart above is that the most…