PERSONAL FINANCE & LIFESTYLE BUSINESS

Around the year 1980 the gold price hit around $800, inflation adjust that to today and it’s around $2050… So with that simple analysis I believe that the gold with reach around that price of around $2000 before it heads back down! So that’s around 60% above from where we are now by dollar value.

Also in the years from 1979-1981 the inflation levels were around 12%. Then after the gold started to come down, the inflation also went down gradually to about an average of 2.5-5% and now it seems that we are on our way back up to that trend of the inflation levels. There is an exact repeating pattern here from what I see on the charts.

So next year we could be looking at an average rate of 3.5-7% increase to inflation. And after next year when it starts to hit around 10%+ levels we could see that level run for around a couple of years and expect the gold to drop down about 50% in value from the particular price (So then would be a great time to capitalize on all commodities). I think that it’s important to watch the levels by understanding the real correct value of things by the markets, and where they are trading at; instead of trying the time the things. Because time does not tell value, the real value is told from adjusted historical comparisons and fundamental growth.

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