Contracting Fibonacci Spiral Puts Gold Near $4,000 by 2013 and $7-10,000 by 2020 (+5K Views)

There are a few interesting points to note:

1) At every time point on the Fibonacci spiral thus far, each subsequent point in time has reached a higher high and on the same note, each gain has been smaller and smaller on a percentage basis than the prior move…

2) Each top has been followed by an excruciating decline of at least 40-50%…

3) Each point of the contacting Fib cycle is more condensed than the former, so ergo, volatility will increase as we continue to reach the point of singularity nearing 2020-2021.

4) The collective human psyche is driving this cycle…all events that occur on an individual basis be it personal success or failure, deaths, births, accidents wars etc. etc. are randomly occurring while the cycle tops are like towns on a road map with a train holding a constant speed between them…the destination will be reached at a particular point in time and what happens to people on the train during the trip does not affect the outcome of reaching the destination. Like anything, this cycle could be stopped by a nuclear war, asteroid hitting the earth or any event as large as those mentioned…cycles can be stopped, but recognition that we are in a large cycle nearing completion is worth taking note over.

5) Because the broad stock markets are trapped in a spiral does not mean that tops are limited to other sectors…gold bottomed around 2000 and topped in 2008….that is approximately 8 years… September 10, 1999 was the low and May 1, 2008 was the high….this represented 3156 days, or 8 years, 7 months and 21 days (7.5% above the perfect value of 2922 days for an 8 year time frame). If we take 61.8% of this value, then the next top for gold is due on Monday September 2nd 2013…If we put +/- 5% onto this and assume that it will be earlier rather than later (due to the first part of the cycle), then the earliest expected top is February 25th, 2013. Since the first leg was longer than 8 years by 7.5%, it is more than likely the end of January 2013 is a target date…it could occur nearer to mid January 2013, but this is the time frame to expect action.

The above is an observation, but it is rather interesting that gold is operating on a smaller Contracting Fibonacci Spiral Cycle that is in synch with the larger Contracting Fibonacci Spiral the markets are in. Adding together the sum of parts, the price of gold will move up in price in 2013, 2016, 2018, 2019 and 2020, with each subsequent leg moving less in percentage terms than the prior move. Gold advanced 4 foldish from 1999 until 2008 ($252/ounce to $1046/ounce). This suggests that gold should top out below $4000/ounce over the course of the next year (Personally, the highest I think it can reach is $3074/ounce). The price of gold is likely to top out near $7-10,000/ounce by 2020, but each advance will be lower in percentage terms of the former leg.

Conclusion

I thought I would share this thought with everyone, because the cycles the markets are presently in will be difficult to navigate…Remember that all markets are interwoven and that the principles of Fibonacci are throughout nature. The cycle we have been in since 1932 has dates locked in, with all events randomly occurring.

When late 2012/early 2013 arrives, remember to take money off the table. Everyone will be screaming hyperinflation, when in fact the exact opposite (deflation) will be in place…

*http://www.fxstreet.com/technical/analysis-reports/futures-market-update/2012/01/03/

If you enjoyed reading the above article then:

Sign-up for Automatic Receipt of Articles in your Inbox or via FACEBOOK | and/or TWITTER so as not to miss any of the best financial articles on the internet edited for clarity and brevity to ensure you a fast an easy read.

Related Articles:

1.Nick Barisheff: $10,000 Gold is Coming! Here’s Why

This is not a typical bull market. Gold is not rising in value, but instead, currencies are losing purchasing power against gold and, therefore, gold can rise as high as currencies can fall. Since currencies are falling because of increasing debt, gold can rise as high as government debt can grow. Based on official estimates, America’s debt is projected to reach $23 trillion in 2015 and, if its correlation with the price of gold remains the same, the indicated gold price would be $2,600 per ounce. However, if history is any example, it’s a safe bet that government expenditure estimates will be greatly exceeded, and [this] rising debt will cause the price of gold to rise to $10,000…over the next five years. (Let me explain further.] Words: 1767.

2. These 8 Analysts See Gold Going to $3,000 – $10,000 in 2012! Here’s Why

Back in 2009 I began keeping track of those financial analysts, economists, academics and commentators who were of the opinion that it was just a matter of time before gold reached a parabolic peak price well in excess of the prevailing price. As time passed the list grew dramatically and at last count numbered 140 such individuals who have gone on record as saying that gold will go to at least $3,000 – and as high as $20,000 – before the gold bubble finally pops. Of more immediate interest, however, is that 8 of those individuals believe gold will reach its parabolic peak price in the next 12 months – even as early as February, 2012. This article identifies those 8 and outlines their rationale for reaching their individual price expectations. Words:1450

3. Gold Bounce Confirms Bull Market Intact on Its Way to $3,000 – $10,000

With what is happening in the price of gold these past few weeks/months it is imperative to take a look at the big picture and in doing so it shows that we are still very much in a long-term bull market. Let’s take a look at some charts that clearly outline where we are currently and where we could well be going. Words: 925

4. Goldrunner: Gold Now on Its Way to $3,000+ By mid-2012

Our work with Gold is based on a “Model” off the late 70’s Gold Bull that has been replicating nicely since we started the Fractal Work with Gold back in 2002 and 2003. Short-term volatile moves in Gold, as we have seen over the past weeks, do not affect our projections based on the model, leaving the expectation of a move in Gold up to $3,000 into mid-year intact as outlined in our previous article entitled Gold Tsunami: on the Cusp of $3000+? Words: 996

5. Alf Field: Gold Going to $4,500/ozt. in Next Wave Towards Parabolic Peak

Once this present correction in gold has been completed it should [undergo] the largest and strongest wave in the entire gold bull market…to around $4,500 with only two 13% corrections along the way. [Let me explain how I came to that conclusion.] Words: 1900

6. Gold: Will it Go to $12,500 – $24,000 – or $39,000/ozt. – by End of Decade? Here’s the Rationale for Each

From questions whether gold is in a bubble to predictions that soaring prices are just around the corner, one thing is clear: a new phase of awareness for gold is upon us. How far might it move before these troubling times are over? [Let’s take a close look at a variety of factors and scenarios before coming to a conclusion.] Words: 5717

7. Gold Will Reach $3,000/$4,000/$5,000 Before This Bull Market Is Over! Here are 12 Factors Why

I believe that the price of gold will… reach… $3,000, $4,000, and even $5,000 [per troy] ounce…during the course of this long-lasting bull market, a bull market that still has years of life left to it…[although] prices will remain extremely volatile – with big swings both up and down along a rising trend…The future price of gold is a function of past and prospective world economic, demographic, and political developments [and in this article] I review some of these developments and trends – so that you can come to your own “golden” conclusions. Words: 3800

8. New Analysis Suggests a Parabolic Rise in Price of Gold to $4,380/ozt.

According to my 2000 calculations, if interest rates and inflation stay constant over the next 2 years, we could expect to see (with 95.2% certainty) a parabolic peak price for gold of $4,380 per troy ounce by then! Let me explain what assumptions I made and the methods I undertook to arrive at that number and you can decide just how realistic it is. Words: 740

9. Don’t Look a Gift Horse in the Mouth – Buy Gold Now With Both Hands! Here’s Why

Since the fundamentals still point to gold’s long-term viability… why [are] investors responding by selling gold…? I was always told not to look a gift horse in the mouth… [so] take advantage of the dip. Words: 962

10. When This Pullback in Gold is Put into Perspective It’s No Big Deal – Here’s Proof

Daily and monthly gyrations in the price of gold are nothing to fret over…The price will recover and, in time, fetch new highs…Here’s proof. Words: 264

11. Where are We Now in the Bull Market in Gold – and How Many Years/Months are Left?

Gold is in a bull market and, [believe it or not,] so are the gold stocks despite their struggle as a group to outperform gold… but [neither] is anywhere close to a bubble, nor the speculative zeal we saw in 2006-2007. Thus, it begs the question” “What lies ahead and when can we expect the initial stages of a bubble?” To figure this out we first need to get an idea of how long the bull market will last and then where we are now based on various indice analyses. [Below I do just that.] Words: 785

12. Is Gold On Its Way to $3,000, $5,000, $10,000 or Even Higher? These Analysts Think So

140 analysts maintain that gold will eventually reach a parabolic peak price of at least $3,000/ozt. before the bubble bursts of which 100 see gold reaching at least $5,000/ozt., 17 predict a parabolic peak price of as much as $10,000 per troy ounce of which 12 are on record as saying gold could go even higher than that. Take a look here at who is projecting what, by when and why. Words: 676