At present Gold looks eerily similar to both Gold in 1976 and the SYP in 2009 prior to their major bottoms.

Despite difficult conditions, some companies have remained active.

Gold, gold stocks, the stock market and commodities appear to be in a similar position today compared to 1976.

Given the scope of the decline in precious metals, some generalist or mainstream money needs to come in for the sector to sustain a rebound.

The bad news is we are already five months into this bottoming process and it can continue for several more months.

The bottom line is the current correction or consolidation is quite healthy for the sector.

Our recent calls for a bottom have been proven wrong as precious metals plunged to another new low.

The rebound is just about here and will pay big rewards to those who are long.

It’s been a tough road for precious metals but the path ahead has strong potential.

Precious metals won’t sustain a rebound until the S&P 500 completes its cyclical bull market.

We see plenty of evidence that augurs for a strong recovery in May.

The latest warning sign on US equities came from the recent issue of Barron’s. A recent survey of big money managers showed extreme bullish sentiment.