Sunday , 19 November 2017


Contracting Fibonacci Spiral Puts Gold Near $4,000 by 2013 and $7-10,000 by 2020

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) suggesting that gold should top out below $4000/troy ounce by the end of January, 2013…[on its way] to $7,000 and $10,000 per troy ounce by 2020. [Let me explain.] Words: 834

So says David Petch (www.treasurechests.info) Treasure Chests in edited excerpts from his original article*.

Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and www.munKNEE.com (Your Key to Making Money!) has edited ([ ]), abridged (…) and reformatted (some sub-titles and bold/italics emphases) the article below for the sake of clarity and brevity to ensure a fast and easy read. The report’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.

Petch goes on to say. in part:

The entire Universe runs on mathematical principles at many levels and under different conditions…As analysis will show today, the US Dollar still has another 3-4 weeks of sideways to upward grinding upward price action. Sideways to slightly negative markets at the end of January will convince most that the year will end lower than this year and that deflation is going to kick in. Everything travels in waves and will continue to follow course until conditions have been satisfied for a reversal to occur.

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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/
 
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