You might remember I showed this chart some months back. I thought I’d update it for you. As long as this ratio is trending up, we’re on the right side of the trade (in PM’s). We’ve hit the bottom rail and broken out. This is more evidence that the normal cycle is progressing nicely.

I added the high and low values for gold and started thinking about those numbers and what they’re telling us. Straight away you can see that they’re exponential, not linear. The highs are increasing by an order of magnitude at each peak. the corrections are fairly predictable at almost 50%. This means that if we want to look at where we’re going in the years ahead, we need an exponential (log) view. The symmetry and mathematics are almost too perfect, but that’s not surprising when you think about it. Just look at the graph of US debt – it’s an almost perfect exponential curve. The symmetry, timelines and mathematics all point to around $9000 on the log chart. That is a lot more than the $2470 I calculated and posted a few days ago using a traditional linear chart and the rules of symmetrical triangle breakouts. I think I need to consider this some more, but I guess we’ll know, because my $2470 target would get taken out long before our mid 2020’s peak for this gold bull.

What do you think ? Am I out of my mind ?