Summary
- A clear correlation in gold price now to that of the 1970s.
- The time for investors to take action is nigh upon us now.
- Industry consolidation is a tell tale sign of a sector low.
In 1968 gold was at $35.18 per ounce, when it commenced its secular bull market before it topped at $185.50 in December, 1974. During the following 2-years, it retraced in a cyclical correction to $104 – see the chart below “Gold 1968 to 1980…). Less than 4 short years later, it rapidly climbed 6.5 times in value to $675.
Now, come forward to January 2004, gold was at $416, approximately 10x where it was in 1968. It then commenced an uptrend into the $1,900 region in September, 2011, or approximately 10x the level it topped in 1974. During the following 4 years, through December, 2015, gold formed a cyclical low at $1,069, or approximately 10x where it bottomed in 1976.
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