In this blog, we look at the logarithmic chart of $GOLD to discern patterns that offer insights into the precious metal’s trajectory over time.
Historical Cycles: A Closer Look
Gold has experienced two major cycles in the past, characterized by significant price surges. The first cycle, from 1976 to 1980-81, saw the price of gold skyrocket from $100 to $800, marking an astounding seven to eightfold increase in just four years. Similarly, in the second cycle, gold surged from $250 to $1800 or $1900, once again demonstrating remarkable growth over a relatively short period.
Current Cycle Analysis
Now, we find ourselves in what could potentially be the third cycle of gold’s journey. With the base of this cycle set at $1000, projections indicate the possibility of another substantial increase, ranging from six to eightfold. Despite being in the eighth year of this cycle, we have yet to witness significant upward movement comparable to previous cycles.
While it may seem like gold has already made substantial gains, the reality is that we’re merely witnessing the early stages of its ascent. The current price levels, although showing promise, are just the beginning. Gold has the potential to gallop to unprecedented heights in the coming years, surpassing even the most optimistic expectations.
The Role of Gold as a Hedge
Amidst uncertainties such as war, currency collapse, and economic instability, gold serves as a reliable hedge, offering protection and stability to investors. While these times may be tumultuous, having gold in your portfolio can provide a sense of security and safeguard against market volatility.
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