I think if we have that bull penant getting us to $1066 sometime in the near future, we'll then drop back to retest $1000, and if that holds, it's off to the races. From that point on I believe we're going to enter Phase 2 of this bull market, which is: Optimism. This should be when more institutional money starts funneling into this market; that is, more mainstream institutions beyond Sprott or Puplava's funds.

It is interesting to note the increased rhetoric I have seen on mainstream TV shows actually recommending gold to investors. In the past, this has not been allowed. Not that I watch this, but it is good to keep an eye on what the mainstream is believing. Cramer, for example, spent about 10 minutes the other day encouraging viewers to buy gold ahead of this bailout decision. I saw a special on Bloombers where a portfolio manager flat-out said to buy gold now, that it is going above its previous high in the near future.

Of course, no one knows for sure, but the ongoing collapse as well as an increasing acceptance by the mainstream could mean we are getting close to the next phase. Of course, the mania is still a few years away at earliest.

Hysteria