Today Michael Oliver, the man who is well known for his deadly accurate forecasts on stocks, bonds, and major markets, spoke with King World News about the takedown in the gold and silver markets and gave investors specific some remarkable advice as to what to expect next.
Strange Trading Action In Gold
January 16 (King World News) – Eric King: “People saw a new president coming in and they said, ‘Okay, there’s going to be more stimulus, gold should be flying,’ and yet gold is going the other direction. So it’s a bit of a head fake to the downside temporarily. Can you talk about what you see happening going forward with gold because I know you are very bullish (despite the manufactured takedown).”
A Look Back
Michael Oliver: “We did an archival look back at how gold behaved in some prior bull markets. And it’s interesting if you go back to the 1975 bull peak or to the 1976 low to the 1980 bull peak, etc, in each of the bull swings each of the moves was about a 7 1/2 to 8-fold move. Well, this move began from $1,050 back in late 2015. You do the math on that ($8,000+). That’s step one.
Step two, and I’m talking price only here, not our momentum work. When price action of a new bull market exceeds the prior bull market peak, let’s take for example in 1978 gold took out the 1975 high. The 1975 peak was $200 and it took several years to get above that level and when it did in the summer of 1978, what happened? Well, gold went a little bit further but then it went into a wobble pattern — up and down confusing price action for about three quarters. And then gold finally engaged on the upside big time.
A similar thing happened in the 2000-2011 gold bull market, which went above the 1980 high of $850. When we took out $850, we spent several quarters wobbling on either side of that old price high. And then gold exploded higher.
Gold’s Recent Price Action
What has gold done recently? Gold made a price high in 2011 of $1,920. We took that high out this past summer. Gold then did what? It has been wobbling around for a couple of quarters on either side of the $1,900 level.
So gold has been behaving exactly as the other prior two bull markets behaved once they took out the prior bull market peak. In other words, they injected confusion into the price action for not just a few months but for a couple of quarters. And then they launched. We’ve looked at gold from various…to continue listening to Michael Oliver discuss the gold and silver takedown and his remarkable advice about what investors should expect next and more CLICK HERE OR ON THE IMAGE BELOW.
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