The Golden Parabola is continuing to follow the cycle of the 70’s Gold Bull as the U.S. Dollar is further devalued against Gold to balance the budget of the United States at this point in the “paper currency cycle” where Global Competitive Currency Devaluations rule. This point in the cycle suggests that Gold will soon enter into a more aggressive higher rise in price to $1,860 – $1,920 per ozt. as it starts to project the higher Vth Wave characteristics of this new Golden Parabola. [Let me explain.] Words: 1403
So says Goldrunner in an article which Lorimer Wilson, editor of www.munKNEE.com, has further edited ([ ]), abridged (…) and reformatted below 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.
Goldrunner goes on to say:
Much of the debt that must be devalued by the U.S. government has not yet been moved to the balance sheet of the U.S. Government. As such, from a fundamental standpoint, we won’t know the true height that Gold will achieve until that has been accomplished although we can gauge the progress of today’s Gold Bull off of the 70’s Gold Bull to a large extent.
Price Inflation and the Price of Gold
We saw price inflation, in general, track Gold in the late 70’s, although much of the rise in general price inflation tends to lag the rise in the price of Gold because Gold’s rise is directly related to the rise in Dollar Inflation that eventually creates general price inflation. General price inflation lags the rise in the price of Gold since it takes time for Dollar Inflation to work its way through the pricing environment of the various markets. Thus, not only are Gold and Silver great hedges against price inflation, but owning Gold and Silver is a great way to preempt the ravages of price inflation that are headed our way over the coming years at this point in the paper currency cycle….
Frankly, I expect the price of Gold to rise fairly rapidly up to the $1620 to $1640 area on the chart before entering into a more aggressive higher rise in price to $1,860 – $1,920 per ozt. as it starts to project the higher Vth Wave characteristics of this new Golden Parabola.
CONCLUSION: Current Golden Parabola on Track
- The current Golden Parabola has been tracking the Golden Parabola of the 1970’s almost perfectly for over a decade.
- Today’s Golden Parabola is driven by the parabolic growth of the U.S. Dollar Inflation in response to the massive backdrop of debt that exists, today.
- We can project price targets as the Golden Parabola grows, but its final height will be determined by the necessary price level for Gold to balance the U.S. budget once all of the liabilities of the U.S. are eventually placed on its balance sheet…