King World News has published very interesting long term charts for Gold, Silver and Gold Mining Shares.
King World News:
Below are some absolutely remarkable charts sent to us by a KWN reader out of Europe. These astonishing charts cover gold, silver, mining shares, the S&P 500, along with some of David’s notes.
The following gold chart which starts at the beginning of 1974 shows the MACD indicator on gold has never been this oversold in history:
Turning to silver, it is also at the most oversold level in history, slightly eclipsing the oversold level from 31 years ago. The plunge you see on the left hand side of the chart took place from 1980 to 1982. As mentioned, silver has now eclipsed the most oversold level in history that was last seen in 1982 (see chart below).
From such extreme levels massive rebounds are to be expected. From June of 1982 to February of 1983 silver rallied a staggering 320%! A move like that today would take silver to $65 in just 8 months!
Below we see the XAU Gold & Silver Index (Gold Mining Shares) is at even greater extremes. It is now by far at the most over sold level in history (see chart below).
At the same time that we have gold, silver and the mining shares at the most oversold levels in history, we can see the S&P 500 is essentially at the most overbought level in history (see 33-Year chart below).
The message for 2014 is that at some point we should expect this trend of historic extremes to reverse in the opposite direction. This means we should expect a big year for gold and silver by the time 2014 comes to an end..."