Sunday , 23 July 2017


Gold Will Take Off Dramatically! Here’s When & Why

Gold’s bull market is NOT finished, but is instead on the verge of launching into aMultiple-forms-of-gold-bullion startling climactic period into late 2016, or early 2017. This article explains why.

The above introductory comments are edited excerpts from an article* by David Nichols (fractalgoldreport.com) as posted on Safehaven.com under the title Special Report: The 64-Month Pattern in Stocks and Gold.

Gold is showing a 72 month timing signature.

It is hard to make out details on the full chart of the bull market, so let’s zero in and look at how the 72 month patterns have been developing.

After the top in Month 144, gold entered a major corrective mode, which took prices back down for a full 38.2% retracement of the entire bull market.

Since the energy for this retracement is always part of the trend up, it is not anything unusual, or even bearish, to see this type of corrective move. It’s just how a market pattern re-energizes for the next uptrend. In the case of gold, this 38.2% retracement has played out over a vast time-frame, which has made the last 3 years seem like an interminable bearish slog — which is exactly what it is designed to accomplish.

Month 36 for this correction just arrived, in August 2014. This is half of the Month 72 timing signature. If we look back at what happened around Month 36 in the previous 72 month phases, something interesting emerges. The first half of the 72 month pattern has played out over 38 or 39 months, with a new phase — up, in both cases — emerging right after that timing point.

Month 38 for this current move is coming right up, in October, with Month 39 arriving in November. If this pattern holds up a 36 month bull market in gold should be emerging by December 2014.

This bull market will announce itself very loudly, and very clearly, with a breakout above the long consolidation triangle that has been developing over the past year, and which is now stretching towards the “still point” or the apex of the triangle. This is the precise point where all of the energy from the move up has leaked out of the market, setting the stage for a burst of fresh energy.

This consolidation process is exactly equivalent to dropping a tennis ball on a hard floor. The first bounce will be strong, but subsequent bounces will lose energy until the ball finds equilibrium, resting on the floor. All of the energy during these bounces was imparted at the top, and the subsequent bounces represent a dissipation of this energy.

Again, it’s important to remember that these monthly patterns take shape on a time-frame that is not natural to us as market participants. So please keep in mind that gold will continue to frustrate the bulls, and appear to be in terrible shape, up until the start of the next phase of the bull market in December. You will continue to doubt gold’s future right up until the time when it breaks out.

It’s also important to know that you will also doubt the viability of the breakout, as during the early stages gold will do everything it can to “shake off” the maximum number of people. Typically this involves a very sudden and large rally to throw off the bears, and then an equally energetic dump to throw off the early bulls so it’s not going to be an easy ride into the top in 2016 or 2017, except during the late stages, when you will be nervous about protecting your profits. It’s never easy.

At this point I can hear what you’re thinking: what happens if gold breaks to the downside, and drops below the big retracement level at $1,225?

The easy answer to that is it would be quite disastrous. That would likely mean a 72 month correction is in the works, and the gold bull market is really and truly over.

However, there is a very strong — super strong, even — argument that the gold bull market is not only not over, but destined for bigger things. This is the 36 year cycle of monetary crises, which has hit like clockwork, right on schedule, over the course of history, including the entire history of the United States.

(I have discussed this big cycle in detail in previous reports, but it’s worth a quick re-cap now:

  • 36 years prior to 2016, in 1980, gold hit its massive bubble peak, coincident with rampant inflation.
  • 36 years before that, in 1944, the world gathered in Bretton Woods and anointed the US dollar as the global reserve currency.
  • In 1907 there was the “Panic of 1907” as a liquidity crisis swept the country.
  • Prior to that was the “Panic of 1873”
  • And yup, you guessed it, 36 years before that was the “Panic of 1837”
  • Almost unbelievably, the first banking/liquidity crisis hit the US right on schedule around 1801, as early speculation in real estate during the first years of the new republic eventually came down for a correction.

This flawless historical record points to 2016 — or possibly 2017 — as the time when this current monetary crisis will come to a head – and gold will be a major beneficiary of this coming monetary crisis.)

Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.

*http://www.safehaven.com/print/35456/special-report-the-64-month-pattern-in-stocks-and-gold (Copyright © 2008-2014 Fractal Gold Report. All Rights Reserved.)

If you liked this article then “Follow the munKNEE” & get each new post via

Related Articles:

1. Gold/Silver Ratio Trend Suggests Gold Transitioning Into New Bull Market – Here’s Why

The continuing upward trend in the gold/silver ratio (continuing weakness in silver relative to gold) is not in conflict with the view that gold commenced a cyclical bull market last December and is working its way through a lengthy basing process. Here are the details: Read More »

2. Long-term Picture Shows Bull Market In Gold & Silver Is STILL Intact

The day is coming when insincere promises made by bankers to deliver tons of silver and gold sometime in an uncertain future will not be good enough to satisfy market demand, and that’s when this farce ends. Expect it to end with a bang, not a whimper, and people will either be in or out when it ends, so the time to get in is now. Read More »

3. It’s Time to Get Aggressive On the Long Side of Gold – Here’s Why

For those of you who fall in the gold bug camp, the technicals and sentiment may finally be aligning in your favor once again. Here’s why. Read More »

4. Buckle Up: Gold’s About to Begin A Major Breakout! Here’s Why

Buckle up! Gold is coming out of hibernation within the next 6 to 12 months and will then begin a major breakout to the upside to at least $3,600 over the next 2 to 4 years. Read More »

5. Goldbugs Should Pray for Higher Interest Rates – Here’s Why

Interest rates cannot stay low forever so, while the Fed’s low interest rate policy is pushing stock and bond prices higher, it is also infusing potential energy into the gold market. Therefore, it is only a matter of “When?” and not “If?” this trend reverses and gold catapults higher. Read More »

6. Part 2: Gold Has Bottomed & Is Now On Way to $4,000

In an opposite mode to the very bearish outlook for stock markets, developing evidence suggests that precious metals and in particular gold and gold stocks have completed a bear market low…and have already begun a major bull market. Read More »

7. A 5-digit Price for Gold Is Not That Far-fetched – Here’s Why

When I suggest that the gold price can rise to a level in the 5-digit range, I expect to be ridiculed or to have my forecast overlooked by most market participants. Nevertheless, as we will see in a moment the prospect of 5-digit gold is not so far-fetched. Read More »

8. Mark My Words: Gold & Silver Are About to Explode Higher – Here’s Why

War cycles – cycles that govern human social interaction on a grand scale, cycles that can be quantified and used to forecast periods of peace and war, periods of civil unrest and international conflict – are now ramping up and converging in the worst possible combination of forces not seen since the late 1800s. In the process they are setting the stage for gold and silver to explode higher with gold going up to well over $5,000 an ounce a few years from now … silver to more than $125 an ounce … and mining shares, to the moon. Read More »

9. Gold Projected to Reach $4,000/ozt. Sometime Between Late 2015 & Mid 2017! Here’s My Rationale

I am not predicting a future price of gold or the date that gold will trade at $4,000, but I am making a projection based on rational analysis that indicates a likely time period for gold to trade at $4,000 per troy ounce. Yes, $4,000 gold is completely plausible if you assume the following:

10.  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

11. 3 Models for the Future Price of Gold: $2,900 (2017); $3,500 – $4,000 (2017); $9,000

What will the future top prices for physical gold and silver be? Naturally, no one knows for sure but many analysts have developed interesting models and scenarios as to what the future holds and this article reviews 3 such analyses for your consideration. Read More »

12. Huge Rebound in Gold & Silver Stocks Coming Soon – Here’s Why

It’s been a tough road for precious metals but the path ahead has strong potential of being significantly profitable and in a short period of time. The buying opportunity that we’ve spoken of for months could be days away. When precious metals equities rebound, they rebound violently. Read More »

13. Early 2017 Should See A Minimum of $3,600 for Gold & $100 for Silver! Here’s Why

Since the start of June, typically the worst month for precious metals when looking at seasonal charts, gold is up $75 or 6% and silver is up over $2 or 11% while many of the mining stocks that we track are up 30% or more in the past 3 weeks. Prices normally start to gain momentum after June and close the year very strongly so, while a pullback tomorrow would not be surprising, I believe the trend will be towards higher prices for the remainder of the year. Read More »

14. Gold Should Bounce Sharply Higher – Here Are 10 Reasons Why

Is it time to throw in the towel? Is the bull market in precious metals really over? I don’t think so because my analyses suggest that nearly all of the fundamental factors that have been driving the gold price higher in the past decade have only strengthened in the past two years. Now that the correction has most likely run its course, I expect gold to bounce sharply higher. Here are 10 reasons why. Read More »

15. Incredible Bounce Coming Soon In Gold & Silver – Here Are 5 Reasons Why

Get ready for an incredible bounce higher in the gold & silver junior miner sector. Here are five reasons why. Read More »

 

One comment

  1. Said another way, The Dem.’s have only until the end of the year to kickstart the US economy, after that the GOP will have the ability to further reward the Ultra Wealthy that helped them take control of Congress, so Fiscal change is in the air!