1. The US Current Account must be in Deficit position and growing. Yes, this is a present condition and it shows no fundamental signs of reversing for a significant time. This is the account that measures the amount of US dollars in the hands of non-US entities. It is usually invested primarily in US Federal Debt instruments.
2. An intact negative trend in the US Dollar overall must exist. It should have the characteristics of a bear market. This is fact true for the US Dollar today. We have a classic long-term top called a Head & Shoulders formation, which was subsequently confirmed by price and volume action. Even the dollar bulls now are looking only for the dollar to stabilize at lower levels. This criterion is in place for a long-term bull market in gold.
3. The general commodity market is showing in many ways, both fundamentally and technically, that it is in a base formation from which one can expect higher prices.
4. Trust in paper assets must be waning for gold to assume an investment role internationally. Some recent examples of causative items, which have turned investors away from the absolute belief, in existence from 1980 until now, that paper assets were storehouses of value are the comments on GE & IBM accounting practices, the decision against Anderson and the evolving case of Enron.
5. The momentum in the appreciation of the bond market must be decelerating. This ingredient may now be viewed as positive to a long-term bull market in gold.

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