Gold After US Dollar Dominance / Commodities / Gold & Silver 2020
Today, if gold had the same kind ofperformance as the Dow since around the creation of the Federal Reserve in1913, then it would have topped out at around $7 758 [(29568/78.78)*20.67].Yet, it only has an all-time high of about $2 089.
In 1973 gold was in a similar type ofposition. The Dow had peaked at 1067.2 (in Jan 1973), which represented aX13.55 (1067.2/78.78) since 1913. If gold had scored a similar performance, itwould have had a peak of about $280 (13.55*20.67), yet its peak at that time(the beginning of 1973) was only around $70.
Of course gold eventually reached $280 tomatch the Dow’s performance, and peaked at around $880 in 1980. Thus, in myopinion, it is virtually guaranteed that gold will again catch up with theDow’s performance since 1913, and significantly surpass it just like in the70s.
This means we will likely see gold reach $7758 (in the near future) and eventually go on to reach multiples of that high.
I did a similar comparison for silver (now vs 1973), and it is interesting to note that silver actually surpassed itsstanding all-time in the same year (1973). Also, gold had a great year in 1973,going from around $65.2 to a high for that year of around $126.45.
The current year has a lot in common with1973 (as illustrated in previous posts), and I have every expectation that wewill see a great year for gold and silver prices.
Here is a long-term chart of gold(macrotrends.net) that shows how 2020 and 1973 could be similar for gold from acycles point of view:
I have marked two patterns, both starting ata major silver peak (1919 and 1980), with major interest rate peaks followingsoon after. I have also marked them 1 to 6, to show how the cycles could becompared.
We are now potentially after the all-timehigh of the Dow (Feb 2020), just like after the all-time high in January 1973.We are now in a time after the decision was taken to virtually kill the USdollar, just like 1973 was a time after Nixon killed the Gold dollar in 1971.
Gold is going much higher, and trading inand out of one’s position is generally a foolish exercise.
For more on this, andsimilar analysis you are welcome to subscribe to my premium service. Ihave also recently completed a Silver Fractal Analysis Report as well as a Gold Fractal Analysis Report.
Warm regards,
Hubert
“And it shall come to pass, that whosoevershall call on the name of the Lord shall be saved”
http://hubertmoolman.wordpress.com/
You can email any comments to hubert@hgmandassociates.co.za
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