History is testament that there exists monumental probability (76% to 100%) that 2014-2016 will witness impressive gains for Gold, Silver and Precious Metal Equities…across the board. Below are 8 charts that show that Golden Crosses are a fait accompli or are about to experience imminent completion thus heralding an immediate new Bull Market and that the forth-coming secular bull markets in all forms of precious metals may well far surpass the forecasts herein stated. The focus of the following analysis is to prove the predictable accuracy and timing of the The Golden Cross.
So says Vronsky (gold-eagle.com) in edited excerpts from his original article* entitled Gold Forecasting Via The Magic Of The Golden Cross (Part 1).
[The following is presented by Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com and www.munKNEE.com 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. This paragraph must be included in any article re-posting to avoid copyright infringement.]
Vronsky goes on to say in further edited excerpts:
The Golden Cross – A Definition
- When prices begin a move up, the shorter term 50 day moving average (50 dma) will begin below the longer term 200 day moving average (200 dma).
- As the price continues rising, the 50 dma will cross above the 200 dma and continue above it until there is a material change in the price trend.
- Therefore, the point at which the 50 dma moves above the longer term 200 dma is known as The Golden Cross and is considered by competent chart analysts as a reliable A BUY SIGNAL.
Below is shown the 2001-2014 history of the Golden Crosses of eight precious metals related securities – and the profitable results they subsequently produced.
In order to highlight the Golden Cross, the top chart will only show the 50 dma and 200 dma (omitting the actual price of the security for clarity). However, the actual price trend of the underlying security will be seen below moving average chart.
1. GOLD (Bullion) – The Golden Cross is imminent
2. GDX (Market Vectors Gold Miners – NYSE) The Golden Cross is completed
3. GDXJ (Market Vectors Junior Gold Miners – NYSE) The Golden Cross is completed
4. GDM (Gold Miners Index – NYSE) The Golden Cross is completed
5. HUI Index (Goldbugs Index) The Golden Cross is completed
6. XAU Index (Gold & Silver Index) The Golden Cross is completed
7. GLD (SPDR Gold Trust shares – NYSE) The Golden Cross is completed
8. SILVER (Bullion) The Golden Cross is almost completed
Forecast Price Basis
Market History since 2001 demonstrates the profitability subsequent to flashing of the magical Golden Cross Buy Signal.
The following forecasts are based on the assumption that the predicted future price and date might be equal to the average appreciation of each of The Golden Crosses Buy Signals since 2001.
1. GOLD (Bullion) – The Golden Cross is imminent
Since 2001 GOLD has had four Golden Crosses with an average gain of 67% over a 22-month period. Based on this it is predicted GOLD might reach $2,170 by January 2016.
2. GDX (Market Vectors Gold Miners – NYSE) – The Golden Cross is completed
Since 2001 GDX has had one Golden Crosses with an average gain of 85% over a 27-month period. Based on this it is predicted GDX might reach $46 by June 2016.
3. GDXJ (Market Vectors Junior Gold Miners – NYSE) – The Golden Cross is completed
It is not possible to make a reasonable forecast for GDXJ as it has not had a long enough record. However, as it is more volatile than GDX, one might estimate GDXJ might rise 100% to $80 in the same time period that GDX is predicted to increase 85% by June 2016.
4. GDM Index (Gold Miners Index – NYSE) – The Golden Cross is completed
Since 2001 GOLD has had five Golden Crosses with an average gain of 93% over a 17-month period. Based on this it is predicted GDM might reach 1360 by August 2015.
5. HUI Index (Goldbugs Index) – The Golden Cross is completed
Since 2001 HUI has had five Golden Crosses with an average gain of 96% over a 16-month period. Based on this it is predicted HUI might reach 461 by July 2015.
6. XAU Index (Gold & Silver Index) – The Golden Cross is completed
Since 2001 XAU has had five Golden Crosses with an average gain of 54% over a 15-month period. Based on this it is predicted XAU might reach 152 by June 2015.
7. GLD (SPDR Gold Trust shares – NYSE) – The Golden Cross is completed
Since 2001 GLD has had two Golden Crosses with an average gain of 81% over a 22-month period. Based on this it is predicted GLD might reach $232 by January 2016.
8. SILVER (Bullion) – The Golden Cross is almost completed
Since 2001 SILVER has had three Golden Crosses with an average gain of 157% over a 30-month period. Based on this it is predicted SILVER might reach $52 by September 2016.
[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.]
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