Jackbal Phoebus8 Feb 2022 16:27
Thought Id just share this with you about interest rates.
from 1972 to 1980 gold went up 22 times in value. Similar to today high inflation rates of 26% and interest rates of 19% an energy crisis and lots of todays symptons so when the fed start to increase rates which they will do mildly as they have printed in last 2 years alone 38% more dollars which is causing inflation. they are limited to putting rates up as every 1% is equal to just 300billion extra payments interest. their economy is 3 trillion and the deficit have grown in last 15 years from 5trillion to 30trillion so they will tell you inflation is transitory.
In 2003 gold was 350dollars and when the fed increased rates from 3% to 6.5% gold only went up 6 times from 300 dollars to 1923dolars.
In November 2015 gold was 1045 dollars it had fallen by 50% from 1923 and again the fed increased rates where did gold go 2088dollars.
Im expecting gold to be 2500 to 3000 this year end then a pull back to 2000 before a march onto 5,000 to 7,000 dollars in next 4 years. This is what my oppinion is there will be lots of bumps in the road but thats my guess.
So do I expect gold to go down not much before a big rise. by end of year 2500 to 3,000 from July time onwards.
lets see who is right want to put money on it. We are in the third biggest Bull run in gold ever.
Extra a bit of info. In the past the gold to dow ratio has been as little as 1/1 on 3 occasions. in 2008 the gold to dow ration was 1/6 currently the dow has been in a huge bull run for last 30 years unbelieveably over valued. Currently the gold to dow ratio is 19/1 and the dollar is falling so either gold has to rocket to get to 13/1 or the dow has to fall significantly or maybe a bit of both so either way gold is going one way thats up. Just a matter of time.
Im expecting the ratio to be at least 6/1 or much less this time due to money printing and high inflation. The fed has printed that much money they can only let inflation wash it away.
Comments welcome.
looking forward to your reply and wager all bets covered.
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