As expected, Gold plunges to new low (very close to my Timing forecast) last Friday. But, don’t get discouraged, Gold will skyrocket to $6000 or higher in the next Super Grand Gold Cycle that will start to unfold from 2016 onwards. Unfortunately, based on my intermediate Cycle Timing, Gold has not bottomed yet and it still has to go much lower before a ‘generational buy’ opportunity is initiated.
All my subscribers know that I love Gold and Silver because I don’t trust what the governments are doing especially the U.S government. But, I don’t simply buy at any time and in fact most of the time, I focus on Short Selling gold and silver based on the combined analysis using Technical, Cycle, Sentiment and Fundamental.
Yes, Gold’s prime time will come one day when the sovereign debt crisis hit the U.S.
‘U.S. Treasury Secretary Jack Lew recently proudly announced that for the fiscal year ended Sept. 30, 2014, the federal government collected the most tax revenue ever: $3.013 trillion. But despite record taxes, the federal government spent $483 billion more than it took in.
U.S government has a $17.8 trillion debt due to overspending. And when the federal government does not have all the money to pay its bills, it borrows. Interest payments on the federal debt represent 7 percent of the federal budget. By the way, the average interest rate paid on the $17.8 trillion of debt is 2.3 percent. Imagine how much interest would be paid when interest rates normalize, say at 5 percent’.
A recent study by Ray Dalio, founder of the world’s largest hedge fund, found a 90% correlation between the global money supply and the price of gold. In fact, gold has a close relationship with debt thanks to fractional reserve banking and the fiat currencies that make up our global money supply. And if you took all the current debts in the world economy right now and had to cover those debts with gold, it would take a price of $19,500/oz.
All my subscribers also know that I have been bearish about gold and silver since 2011 and sometimes, I suggest to ‘short’ (sell) the gold and silver, just like the recent 2 times. Occasionally, I also go ‘LONG’ (buy) too as a counter-trend affair when Gold has hit the capitulated low (extremely oversold status).
‘When are Gold and Silver going to hit bottom and at what price’? This analysis is reserved for paid members (chart shown below does not indicate the actual time). Calculation and measurements (of this super grand Cycle) are based on past ‘historical data’ using Gann’s Cycle, Fibonacci (phi-ratio), historical patterns, sun-spot Cycle). They have been consistently accurate (in the long term direction).
The next Super Grand Gold Cycle will be bigger than ever – when it turns, big money can be made. You see, every 82 years, and even every 36 years, 40 years, 21 years, 11 years (sunspot cycle) and 7 years (biblical number), this gold Cycle rears its head and fortunes are made. At this point, you must prepare yourself to reap the coming golden opportunity.