Cycle Lows in late-2013 & mid-2015; 2016 Begins Bullish Phase.
August/Sept. 2011 – exactly 40 years from the Nixon Shock of August 1971 – fulfilled a projected multi-year peak in Gold (see links to 2011 Reports below), creating a new type of shock for gold bugs. 2013ushered in the next phase of a multi-year bear market (even as fundamental events – occurring behind the scenes – are expected to set the stage for a new advance in Gold in 2016)…
2013 is when the latest phase of the 40-Year Cycle came back into play, a topic that has been discussed for over a decade. From the Silver debacle of 1853 (and Panic of 1857) to the Panic of 1893 to Gold & Silver confiscation in 1933 to the collapse of Bretton Woods in 1973, the 40-Year Cycle has perfectly timed bubbles, crashes & panics that incorporate a waging war between Gold & Silver on one side and a fiat (paper; debt-backed) Dollar on the other…
There are critical and revealing indicators that should mold the outlook for the coming years – including what could/should be a dramatic period from 2016–2018. They are discussed in our publications and will be constantly monitored as Gold (and Silver) pass through this pivotal period in 2014–2015.
Not only do we inform readers about this uncanny cycle – and its future implications – but, more importantly, we strive to educate readers on how to recognize & respond to the subtle signals that should usher in momentous shifts in the financial markets. Just as most investors completely missed the signals of a multi-year Gold peak (in August 2011), the majority are also likely to miss the signs of a major bottom in the near future.
To give you an idea of the fundamental factors that have also influenced this analysis, the following is a brief synopsis of this 40-Year Cycle and the (Gold) events that have occurred at precise 40-year intervals, including dramatic shifts and financial panics:
– Collapse of Bretton Woods (international monetary agreement revolving around US Dollar).
– Onset of floating exchange rate system (result of Nixon Shock***).
– Oil Weapon used against US & West; Oil quadruples in price in 5 months; Islamic revival replaces Arab nationalism throughout Middle East.
– US/Saudi Arabia agreement to price oil in Dollars (effectively backing Dollar with oil; by 1975, all OPEC members obliged).
– Birth of true, unadulterated ‘fiat’ US Dollar via Jamaica Accord*** in 1976.
[***The events of 1971 & 1976 provided 40-Year Cycle harbingers to correlated Gold shifts expected in 2011 & 2016. 2011 has already fulfilled the first expectation, with uncanny accuracy & precision. Could analysis for 2016 be just as prescient?]
— Gold banned; Gold confiscated; Gold coinage out of production. (All of this followed the 1931 decision by Britain to abandon the Gold Standard.)
— Price of Gold (for international clients) increased by almost 70% overnight (from $20.67/oz to $35.00/oz).
–Period of monetary stimulus from 1933–1936/1937 – and then sudden tightening – ultimately resulting in second stock market crash (1937).
— Panic of 1893; Bank runs; Skyrocketing unemployment.
— 500 banks & 15,000 businesses failed;
— Worst U.S. Depression (up to that point).
–Leads to major election battle over a Gold Standard vs. Silver Standard.
— Silver debacle (reducing weight of Silver in coins).
— Suspension of payment in Silver AND Gold.
— Panic of 1857
— Suspension of payment in Gold.
–Battle over chartering of 2nd Bank of United States.
— Early years of battle between paper money and hard money (Gold & Silver).
— Panic of 1819 – a bubble & crash sequence that is a harbinger of what to expect in America… every 40 years.
—Tea Act; Taxation of colonists (currency control) – to be paid in Gold/Silver.
— Revolutionary War & Declaration of Independence (from Britain AND Bank of England).
— US issuing of ‘Continentals’ (a currency – NOT backed by gold or silver) that became virtually worthless within a few years.
— Congress includes Article 1, Section 10, Clause 1 in the US Constitution: “No State shall…make anything but gold and silver coin a tender in payment of debts.”
In each case, the initial event occurred in the ‘3’ year – at PRECISE 40-Year intervals – and was followed by more significant events (often the most dramatic shift) in the ‘6’ or ‘7’ year. That would then yield a second phase or shift from the ‘7’ year into the ‘1’ year of the next decade. [While it is more complicated than that, and involves some critical indicators & events presaging that, the overall cycle repetition is very simple.]
All of this should lead into a MOMENTOUS event in 2016–2017.
That is the latest phase of the 40-Year Cycle that has been operating in uncanny precision since 1776 (Revolutionary War).
In 1816 (rechartering of 2nd Bank of the United States) & 1857 (suspension of Silver payment and Panic of 1857), faith in the Dollar/US currency was compromised.
In 1896 (election hinging on Gold Standard; ‘Cross of gold’ speech by William Jennings Bryan; trough in US economy following worst depression; Klondike Gold Rush), 1936 & 1976 (Jamaica Accord) – the battle between Gold & the US Dollar raged on.
In 2016 (and possibly 2017), another pivotal event is expected… and has just been POWERFULLY validated by two decisive, geopolitical events! The intervening action of 2014–2015 should validate.
And that is likely to be preceded by another stock market crash and economic ‘retreat’ (or worse) after inflationary stock market cycles peak in late-2014. 2016 is a decisive time for multiple Middle East nations, for Russia and for China… and related developments are already taking form.
And all of that should lead into a decisive convergence of Middle East Unity Cycles – in 2018–2021!!
But, let’s not get ahead of ourselves! 2015 could usher in a Major bottom in Gold & Silver IF specific criteria are met in the first half of 2015. It is possible that it could even time the ‘buying opportunity of the decade’. And 2016/2017 is when a new bull market in Gold is expected.
The specifics of Gold’s outlook – and related trading/investment strategies – can be found in our publications (www.insiidetrack.com/
Also, for background analysis & cycles that preceded this – and accurately pinpointed the 2011 peak in Gold & Silver (PRECISELY 40 years from the Nixon Gold Shock in August 1971) – refer to the following publications:
While this description is admittedly simple, there are complex events – already unfolding – that verify these expectations. Since 2010 (and even before) a powerful combination of forces has been at work, seeking to undermine the US Dollar… when the time is right. Events in 2013 corroborated.
And, since 2011, nation after nation after nation has begun repatriating their Gold – taking it out of the hands of US banks and moving it to where those nations feel it is much safer… back at home. All of this is building to a crescendo that will likely accelerate in 2016/2017. Will you be prepared?