Gold Fulfills Long-Term Cycles in 2020; Sets Stage for New Advance in ???.
11/29/21 INSIIDE Track – History rhymes; it does not repeat. The same mistakes might be made (’those who do not learn the lessons of history are doomed to repeat them’) but the actual events are different… often dramatically so. That does not, however, change the overall principles, cycles, or societal shifts that take place at key intervals.
Dollar Delusion?
The Dollar experienced some relatively wide swings in 1973 – 74 – first plunging almost 20% from Jan – July ‘73 and then rebounding the same amount into Jan ‘74. That was followed by another sell-off – stretching into Feb ‘75. However, the more telling chart is that of Gold, which began a major uptrend when the US abandoned the fixed ERS in 1971.
After an initial surge in 1971 – ’72, Gold slightly slowed its ascent but continued its uptrend into Nov ’74 (before a ~40% correction took it lower into 3Q ’76… and then the real fireworks began). Both Gold and the US Dollar Index have adhered closely to their own distinct 7-Year Cycles (1/7 of a 49-Year Cycle) with the Dollar unfolding in this manner…
1971 – US abandons the fixed exchange rate system (for foreign currencies) AND the convertibility of the Dollar into Gold. (7 Years earlier – in 1964 – the last silver coins were minted in the U.S.)
1978 – Dollar sets a 14-Year low and begins a 7-year advance into 1985. Paradoxically, 1978 kicked off the accelerated advance of Gold & Silver – a parabolic rally that lasted from 1978 into Jan ‘80 and saw Gold set what would become a multi-decade peak.
1985 – The Plaza Accord (Sept. 22, 1985) ushers in an all-out devaluation of the US Dollar. It plummets for the next 7 Years. At the same time, Gold began a 2-3 year surge into a secondary peak in Dec. ‘87.
1992 – The Dollar finally finds a bottom (after a fall from 165.00 to 78.50 basis the Dollar Index – losing over 50% in value). This bottom held for the ensuing 14+ Years. 1992 also brought the Maastricht Treaty – in February – and the development of the Euro.
1999 – The Dollar – in terms of Gold – tops out as Gold begins a massive bull market that saw it surge into 2006 and ultimately into 2011 before a ~4-year pullback (and subsequent surge into 2020).
2006 – The Dollar Index completes a rebound from its late-2004 bottom and begins a decline that will ultimately take it to new 40-year lows. At the same time, Gold completes a 7-year surge – from 1999 into 2006 – and corrects before entering an accelerated advance into 3Q 2011. (14 years after 2006 Gold peaks again.)
2013 – The Dollar Index completes a ~7-year contracting triangle after bottoming in 2008. That culminates a bottoming process and sets the stage for a ~7-year bullish period to follow (versus other currencies).
Also in 2013, Gold culminates its sharpest sell-off and then rebounds to a secondary high in Aug ‘13. That high would hold for ~6 years (before the sellers ‘rested’ and Gold skyrocketed for the final year of that 7-Year Cycle – a much different form of ‘sabbath’).
2020 – The Dollar sets a double top – retesting its early-2017 peak as it completes a 7-year bullish period… versus other currencies. Ironically, the Dollar actually peaked in late-2015 – when compared to, or valued against, Gold. That competing 7-Year Cycle culminates in late-2022/early-2023.
During the same year (2020), Gold sets a 1 – 2 year peak. So, again, the Dollar AND Gold peak during the same year… despite their alleged inverse correlation. It is possible the Dollar Index sees wide swings in 2022 – ‘23, a bit like 1973 – ‘74. The more intriguing part, however, will be if Gold is able to mount another serious advance in [reserved for subscribers]”
2022 – 2023 has the potential to mirror key events of 1973 – 1974 – fulfilling a 49-Year Cycle (‘sabbath of sabbaths or 7 xs 7-Year Cycle).
What Does That Mean for Gold & Silver in the Coming Year(s)?
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