Loading ...Lest we forget the Golden Triangle
If we believe in this chart pattern….. we are ON the most significant POINT in Gold in a very long time.
Chartology is incredible at times. Right NOW is very important. We got the breakout .
Now was it the infamous False breakout and we get the dreaded down around the apex move ?
OR do we bounce off the line and the apex and soar to new highs ?
Pass the Bong
Being Devils Advocate ….. one scenario that seems probable.
Whats your take ?
Since you asked – here’s my take. I was never one to expect GOLD to match or exceed the 2008 low. I keep looking at the 1980 GOLD peak and the bear that followed. The second low – about January 1985 – was lower than the 1982 low, but only marginally so. FED Chairman Paul Volcker had jacked up interest rates in 1980 to tame the galloping inflation of the 70’s. Some banks were charging a higher interest rate for consumer loans than the corner loan sharks at that time – up to 25%. There was a horrible recession in the early 1980s. Real estate where I lived dropped 70% !
We haven’t run away consumer price inflation today, but what we do have is financial asset inflation: stocks, bonds, real estate, art, block chain, for example. Its all supported by debt and easy money. That’s deflationary. Something is going to trigger a reset, and GOLD is telling us its on the way. The question is how bad will it be?
The $700 GOLD price cannot be discounted altogether, but I think the central banks will (attempt to) step in before the deflation goes too far. That being said, this is one man’s opinion, and opinions count for little in the grand scheme of the market place.
Rest assured, when the market finally turns, GoldTent will be right on top of things with Chartology, Elliot wave, Cycle theory, and possible even some other discipline we aren’t even aware of yet. Thank you, posters here at the tent. Yeah, thanks.
Well put SF, and I agree with your semtiment. There are many differences between now and the 70’/80’s/90’s – debt and asset inflation are both huge. A trend towards global de-dollarization is now underway, with India, China, Russia, Iran and now even Germany calling for the dollar to be ditched for global trade settlement. Big changes are coming (as always).