On the heels of gold close to breaking its all-time high and silver surging strongly, the gold and silver markets are setting up for violent moves higher.

Gold Bull Just Getting Started
July 25 (
King World News)
Top Citi analyst Tom Fitzpatrick:
  The other 2 major bull markets in Gold were:
1976-1980 (when it multiplied in value by about 8.5 times as we came out of the worst recession post War only to see inflation surge as growth returned) and 2001-2011 when it multiplied in value by about 7.5 times as we saw the NASDAQ bubble burst, 911, a housing bubble, the Great Financial crisis and huge monetary and fiscal stimulus.

This Crisis And $4,000-$8,000 Gold
This time we have a crisis, the largest fiscal and monetary stimulus in the history of mankind and a fed that has told you it will have no intention of “reining things in” as the economy improves, even if inflation starts to rise.

As a consequence we see no reason why this bull market cannot be as strong as those prior 2 averaging a multiple of 8 times over an average of 7 years. Translating that to the $1,046 low in 2015 would come up with a number north of $8,000 possibly in as little as the next 2-3 years. Even if that sounds aggressive, a move similar to what we saw in 2009-2011 would suggest close to $4,000. Closer to home a break to new highs would suggest an extended move initially towards $2,400 (trend line off the 1980 and 2011 highs).

Silver: Back To $50
Silver has moved above the $21.14 level twice in history (1979 and 2010) and failed there twice (2008 and 2016). In both instances that this range gave way, once it got a weekly close above this range, it never looked back. After the 1979 break it reached a peak of $49.45 within 2 months. After the 2010 break it reached a peak of $49.80 within 7 months. While that seems like a big move (and it is) let us not forget that Silver has never even sustained a move over $50 in history despite getting to that area for the first time over 30 years ago while Gold is substantially above the 1980 peak of $873.

Gold/Silver Ratio Headed Even Lower
The Gold Silver ratio has hit and so far held the 55 month moving average at 81.03.It has not had a monthly close below this average in over 7 years and there is a wide gap to the 200 month MA and trend line support in the mid 60’s. A monthly close below the 55 month MA, if seen, would suggest continued Silver outperformance in the months ahead.

Legend Pierre Lassonde gave an an incredibly powerful interview to King World News discussing where the gold market, gold industry, and mining stocks are headed, and what he had to say will surprise a lot of people around the world. To find out why legend Pierre Lassonde says the upside on gold is unlimited and much more click here or on the image below.

Pierre Lassonde – Upside In Gold Is Unlimited, Going Far Higher Than People Imagine
Pierre Lassonde – The Upside In Gold Is Unlimited. It’s Going Far, Far Higher Than People Imagine

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