Of all the popular investments, gold (and silver) has been the most frustrating. Although the fundamentals are sound -- largely, that governments are running on a course of unsustainable fiat expansion -- the actual profitability has lagged. Those that did not get in prior to the 2011 commodities spike are familiar with this ongoing frustration.
On top of that, we hear from gold proponents that a recovery is imminent. But year after year of the same message without the payoff, even hardened precious metal investors have difficulty stomaching the losses. No matter how many times we convince ourselves that we are physical-rich and paper-poor, the reality is that being more judicious on the paper would have led to more physical gains.
Nevertheless, I believe that we're on the verge of something extraordinary in gold and bullion markets. I noticed that gold is forming a bullish pennant formation, a reliable indicator in the discipline of technical analysis. Furthermore, silver and the precious metal mining complex are all signaling this very same pattern.
Remarkably, this pennant is occurring within the context of an even larger pennant -- one that has been forming since the onset of the Great Recession! Such massive technical indicators imply an immense rally that only comes about once in a generation.