The World Will See Skyrocketing Gold & Silver Prices

As the ratio begins to rollover when the Dow enters its next bear market and gold begins the final, violent leg of its secular bull market advance, the Dow/Gold ratio will begin the journey to a ratio of between 1/1 or 2/1, from its current elevated ratio of roughly 17/1.  Either way, that will mean skyrocketing gold prices for the gold bulls that have not been shaken out by the brutal bear market.

Silver
The chart below is a look at the Gold/Silver ratio over a 52-year time period.

52-Year Chart Of Silver vs Gold

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You can see the massive outperformance of silver vs gold in 1980 and 2011 (with the price of silver highlighted in orange).  Even as the price of gold begins to massively outperform the Dow, culminating in a cycle that ends at 2/1 or 1/1 on the Dow/Gold ratio, silver’s price advance will be even more remarkable.  For the silver bulls that have remained strong it will be one heck of wild ride.

King World News - The World Will See Skyrocketing Gold & Silver Prices

The Bottom Line
The bottom line is that this massive secular bull market in gold and silver will be one for the history books before it is over, and no government or set of governments or central banks will be able to stop it.  The artificial paper price manipulation (that currently feels like it will never end) will fail just like it did for the London Gold Pool in the late 1960s.  And when it fails, the upside gains in gold and silver will be breathtaking.

Ignore Today’s Noise, The Gold Market Just Experienced A Major Breakout

Gold Breakout
By Michael Oliver, MSA (Momentum Structural Analysis)

Gold overcame a quarterly momentum hurdle this past week. It was enough of a structural event that we label it a major secondary upside breakout (the first being the breakout in February 2016, when annual and quarterly momentum broke out between the $1140 to $1160 zone).

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That initial breakout took gold to over $1377 by July 2016. It then underwent a deep correction and coiling process (not unusual in major trend changes). But all of that noise occurred without disturbing or negating the original annual momentum breakout signal of early 2016…


All during the emotional roller coaster ride since last summer’s peak, gold’s action constructed a new potential upside breakout structure on quarterly momentum, evident on the bottom chart. The red line runs through peak weekly closing readings. Attempts to reassert the upside were repeatedly capped by that line. 

GDX Breaks Out Along With Gold
This past week overcame it, thereby rendering a second major long-term momentum buy signal. This same scale of secondary breakout also occurred with GDX (gold miner ETF). 

There’s also another momentum trigger level overhead, based on the annual 3- yr. avg. 

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Last year’s peak reading was 10% over the 3-yr. avg./zero line (the upper red line on momentum). If the active front month contract (currently the August future) can trade to $1321, that puts annual momentum 11% over the mean and takes out last year’s oscillator high. That number applies anytime this year for the front month active future. If seen, it’s an indication of increasing power. We would treat it as another add-on level.

Gerald Celente Just Issued Major Gold, Silver & Cryptocurrency Trend Forecasts!

Gerald Celente Just Issued Major Gold, Silver & Cryptocurrency Trend Forecasts!

Today top trends forecaster Gerald Celente just released major trend forecasts for gold, silver and cryptocurrencies!

Gold, Silver And Cryptocurrencies
Gerald Celente: While volatility in the heated cryptocurrency markets is stirring warnings that a bubble is about to explode, the Trends Research Institute forecasts that digital currency will grow significantly as the race toward a cashless world accelerates…

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The cryptocurrency sector ended a turbulent July with a market cap of $92 billion. Bitcoin, Ethereum, SETLcoin and others experienced wild value swings as new players entered the field and a growing chorus of analysts warned that a crash was coming.

In fact, billionaire investor Howard Marks compared cryptocurrency investment to the Tulip mania of 1637. During the Golden Dutch Age, the price of bulbs for the newly discovered flower skyrocketed. Then came a dramatic collapse, making it the first recorded bubble.

That’s a sentiment shared by many analysts, who see digital-currency market volatility as unsustainable.

Moreover, the digital coin trading frenzy prompted the Securities and Exchange Commission in late July to begin a review of how digital coins are sold, raising the possibility of tighter government regulations. That news triggered even more uncertainty about the future of cryptocurrency and more volatility in the markets.

But missing from all the analytic fervor over the anticipated bubble crash is a Globalnomic® perspective. It’s bigger than tulips. It reaches well beyond the United States. There is a worldwide movement to eliminate cash, creating a wide-open market gap for digital currencies.

As we forecast last year (Trends Monthly, December 2016) in identifying “No More Cash” as one of Top 10 Trends for 2017: “Soon, you won’t be able to see or touch cash in the coming global cashless society… The pace at which currency across the globe was challenged or devalued accelerated in 2016. …In 2017, there’ll be a global sprint toward digital currency.”

That sprint we forecast is now turning into a mad cryptocurrency dash.

Ranging from eliminating some currency, to negative interest rates on cash deposits, to assigning fees to cash payments and more, the war on cash, as we forecast, is real and growing.

The idea that investing in digital currency is merely speculative because it has no intrinsic or physical value ignores the larger, powerful trend: The world is going cashless.

If people are not using cash and have no physical or emotional connection to their national currency, there’s no sense of pride in holding the coin of the realm.

In a cashless world, there’s no “In God We Trust” to trust.

TRENDPOST:
As we forecast in the Trends Journal (Atoms and Bits, Winter 2017): “The world is shifting from a world based primarily on ownership of material goods to one of accessing services (the world’s largest taxi company owns no cars, the largest retailer owns no hard assets, etc.)…

“The entire global economy is shifting from material objects to intangible bits.”

TREND FORECAST:
Government regulations and interference are wild cards that will affect the trend as it evolves. While volatility will continue in cryptocurrency markets, in a cashless, technologically sophisticated world, this is an unstoppable trend.

GOLD & SILVER TREND FORECAST:
As the world goes cashless and not only crypto currency addicts lose faith in fiat currencies but others as well, there will also be a strong demand for gold and silver, which still maintain their status as the ultimate safehaven. This trend toward gold and silver will accelerate as people want to own a tangible asset rather than simply a digital currency. I maintain my forecast that the downside for gold remains small compared to the upside potential, and when gold breaks above $1,400, it will spike toward $2,000.