The New King of Money, HUI Breakout
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.