The fundamentals of gold are hardly compelling. There are few end uses for the metal and much of what has ever been mined remains in above-ground stocks, which are being added to each year and currently stand at some 165,000 tonnes, with a little less than 20 per cent sitting in the vaults of the world's central banks.

Indeed platinum, presently trading at a $300 premium per ounce to gold, where there are no known large stockpiles and which is "consumed" in the industrial process might seem a more natural candidate, particularly as platinum's annual production is only 7.5 per cent of that of gold.

Instead the price performance of this metal is rather more linked to changes in its supply and demand as well as the performance of other industrial metals such as copper and zinc.

However, there is one unique feature of gold that is possessed by no other investment and which ensures it is an investment of choice for many: its place in human psyche. It has been a global monetary unit for more than 2,500 years while also having significance in language, tradition and religion.

Consider "as good as gold" - a phrase not unique to the English language - as well as gold medals handed out at the Olympics and as traditional gifts particularly in India and China. Therefore, while other investments might have a rational claim to be effective in the current economic climate there are none that have the history and emotional attraction that gold enjoys and which can see it move further ahead whether prices are rising or falling.

David Fuller's view Jonathan Spall's mention of the "human psyche" in this context is so important, and overlooked or underrated by those who have not profited from gold's bull market to date.

I would add that while the human psyche has more history with gold as a store of wealth, it is relevant for other investments as well, particularly those which are also unique.

Indeed, the human psyche, which we usually refer to as investor sentiment, is at the heart of Behavioural Technical Analysis which this service has helped to develop over decades. Today, it is used by many investors and traders, not least within the Collective of subscribers. A two-day workshop on this subject - The Chart Seminar - has been taught annually since 1970. Come along in November to learn, enjoy, contribute and profit.


What does the price chart for gold bullion tell us about human psyche in regard to the yellow metal (weekly & daily) today?

That it is still under accumulation. Arguably, no other information is more relevant. (See also Tuesday's technical review of precious metals.)