The New King of Money, HUI Breakout

By: John Lee | Thu, Sep 22, 2005
Print Email

Gold $472 HUI 243 APE.v 0.43 SVM.v 3.95

HUI has gone up 20% since August 31, is it too late to get in?

Looking at the following chart

I'd say the HUI party has actually yet to get started. Now let's take a look at gold.

Gold has broken out in dollar, euro, and swiss francs. Coupling the breakout with traditionally strong season for gold, it's not unreasonable to assign a $500 price target for 2005. The target can actually be reached as early as October. And keep in mind it took mere weeks in 1980 for gold to reach $850 after the $500 resistance was overcome.

In my opinion HUI will follow suit very quickly by breaking out of 250 resistance to go as high as 500 within 6 months.

I am particularly fond of silver and you can find my silver write up at
http://goldinsider.com/ape.htm
http://goldinsider.com/8_11.htm


 

John Lee

Author: John Lee

John Lee, CFA
Executive Chairman,
Prophecy Development Corp.

John Lee, CFA is an accredited investor with over 2 decades of investing experience in metals and mining equities. Mr. Lee is the Chairman of Prophecy Development Corp (www.prophecydev.com). John Lee is a Rice University graduate with degrees in economics and engineering.

Copyright © 2004-2017 John Lee

All Images, XHTML Renderings, and Source Code Copyright © Safehaven.com