A Key Gold Bull Market Signal / Commodities / Gold & Silver 2019
The gold market is looking a lot like itdid early in the millennium, at the start of the bull market. It is setting upfor a gold bull market that is likely to be way more intense than the previousone, due to the structural weaknesses incurred by the monetary system sincethen.
Debt levels, for example, have grownsignificantly since the early 2000s. US Goverment debts (Federal debt) as apercentage of GDP has grown from 55% in2000 to 105% today.
There will soon be significant marketmovements to compensate for the unsustainable debt levels. If your debt levelsare becoming too high, at some point your credit rating will be affected to theextent that lenders will require higher interest rates and/or they will refuseto provide you any credit. This is true whether you are an individual or anation state.
So, the firepower that was available tokeep the system afloat, during the previous gold bull market, has beendepleted. Economic decline and higher bond interest rates is coming, and theseare rocket fuel to a gold and silver jet (read more about this).
Below, is a Dow/Gold ratio chart:
There was a long-term support line in placefrom 1980. The support was violated in June 2002, and it was warning of thecoming gold bull market. Again there was a support line in place since the goldpeak in 2011.The support was violated in December 2018, and again it signaledthe coming bull market.
Below, is the same chart compared to a goldlong-term chart:
See how gold broke out soon after thesupport was violated on the Dow/Gold ratio chart. Currently we have the samesituation where gold has broken out from a downtrend since 2011, some timeafter the support violation on the Dow/Gold ratio chart.
This will be the third wave since the peakin the Dow/Gold ratio, and it is often more intense than the first.
For more on this, andsimilar analysis you are welcome to subscribe to my premium service. Ihave also recently completed a Silver Fractal Analysis Report as well as a Gold Fractal Analysis Report.
Warm regards,
Hubert
“And it shall come to pass, that whosoevershall call on the name of the Lord shall be saved”
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You can email any comments to hubert@hgmandassociates.co.za
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Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.
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