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 this article I’ll discuss a correlation in gold between the 1970s and today. I’ll then take a look at the “high confidence” portion of the expected move up in both gold and HUI Goldbugs Index and the significant opportunity that is nigh upon us.
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.