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Countries want to see higher Gold prices. A huge rise in the Gold price is
the only thing that will keep the many countries solvent going forward. They must accumulate Gold in these late cycle sideways corrections that are created by “management of Gold’s price” for that very reason. It was the same in the late 70’s. Big moves late in the cycle for Gold and for Silver come after long sideways movements such as we have seen over the past 24 months. Those and other reasons discussed in this post simply scream that Gold is ready to go parabolic.
So writes Goldrunner* (www.GoldrunnerFractalAnalysis.com) in edited excerpts from his most recent newsletter to subscribers (excluding his illustrative charts which are only available to subscribers) posted here with permission. Go here to subscribe and receive his unique analyses with one-of-a-kind charting.
This post is presented compliments of www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and www.munKNEE.com (Your Key to Making Money!) and may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.
Below are snippets of what Goldrunner had to say regarding where and how Gold and Silver move going forward with some comments on other precious metals, potential hyperinflation and the future of the Dow:
1) There is little doubt that we are at the area in the long-term cycle where a huge move higher came for Gold and Silver in the late 70’s.
2) The fundamentals for such a move are coming together:
- Huge Dollar printing,
- Global Competitive Currency Devaluations in full swing and, most importantly,
- Countries seeking to reclaim their Gold that the Federal Reserve has been holding. (Is this a problem for the US, or has the US used that Gold to manage the price via the Exchange Stabilization Fund to help all the various Central Banks and countries by buying time for other countries to accumulate gold?)
It is the above latter occurence – countries asking for their Gold – that simply screams that Gold is ready to go parabolic because most countries have accumulated most of the Gold they think they will need – now, they want to see higher Gold prices.
3) Big moves late in the cycle for Gold and for Silver come after long sideways movements until Gold approaches the log channel bottom.
4) These sideways movements see Central Banks step-up to heavily accumulate Gold as has occurred in this current sideways correction. As we have noted before, and as JS has described on his site for the last few weeks – a huge rise in the Gold price is the only thing that will keep the many countries solvent going forward. [Read: Governments Will Want – Will NEED – Much Higher Gold Prices! Here’s Why] Thus, they must accumulate Gold in these late cycle sideways corrections that are created by “management of Gold’s price” for that very reason. It was the same in the late 70’s.
5) Silver made bottoms before huge runs in late January in 2010 and 2011.
6) Gold has corrected down to the top of the upper fan-line and bottomed at the same log channel bottom line that led to a huge run to double the channel in fractal 2005. Thus, this week could see a very significant historical bottoming point of interest for Gold and for Silver.
7) The DJIA Stock Index has been climbing and that fits well with the Fractal 70’s. The Dow rolled over while Gold and Silver made their first parabolic runs in 1979. The Dow did not crash. We used the DJIA in the late 70’s to help triangulate how high Gold might run to in the current Gold Bull. Fractal comparisons to the late 70’s suggest the Dow will correct down to the 10,000 to 12,000 zone and meet the price of Gold in that range before the Gold Bull is over.
8) IF, the Dow runs much higher than the 2007 high, then “hyper-inflation” is a real possibility, but there is no reason to expect that to occur at this time since everything is tracking the late 70s. Gold to $10,000 to $12,000 would be the Stagflation equivalent of the late 70’s. True hyper-inflation would see Gold go much higher.Gold and Silver primarily gain from the massive Dollar Inflation underway due to their intrinsic value.
9) Platinum and Palladium should also participate well. Copper and other metals should do very well. Intrinsic value “rules” during aggressive paper currency printing/ devaluation, though most metals will be inhibited to some extent due to economic weakness.
10) Value will return to the DJIA Stocks to reflect the devalued Dollar AFTER earnings and dividends return to higher levels but that cannot happen until the economy recovers, and QE does little for the economy except to keep it from crumbling.
Conclusion
This week could see a very significant historical bottoming point of interest for Gold and for Silver….Big moves late in the cycle for Gold and for Silver come after long sideways movements suggesting that both precious metals are ready to go parabolic.
For the moment, GOLDRUNNER ~ Email me at GOLDRUNNER44@AOL.COM with your questions and comments.
Editor’s Note: The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.
*Goldrunner offers a subscription service which provides detailed technical analysis of where the price of gold, silver and precious metal stocks are going in each stage of their respective bull runs. This service comes with detailed charting based on conventional technical analysis and his proprietary fractal analysis based on the ’70s. Go here to subscribe.
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