kingrichards
04-23-2009, 04:29 PM
Take a look at the one-year chart of the Gold ETF, GLD. It appears to have formed a double short-term bottom at $85 and I believe this has set the stage for Gold to make its third attempt at breaking out for good above $1,000 per oz.
Remember how long it took the DOW to break the 1,000 barrier? After doing so, it went almost straight up to 12,000.
Now the DOW/Gold ratio is in free-fall. In 1980, it bottomed at 1 and inflation is going to be much worse than the 1970's. There is no doubt in my mind that it will see 1 again. The question is: when and where will Gold and the DOW meet? I am sticking with my prediction of $5,000 per oz Gold and DOW 5,000 in less than 5 years.
Remember how long it took the DOW to break the 1,000 barrier? After doing so, it went almost straight up to 12,000.
Now the DOW/Gold ratio is in free-fall. In 1980, it bottomed at 1 and inflation is going to be much worse than the 1970's. There is no doubt in my mind that it will see 1 again. The question is: when and where will Gold and the DOW meet? I am sticking with my prediction of $5,000 per oz Gold and DOW 5,000 in less than 5 years.