According to recent Elliott Wave theory analyses gold is about to go parabolic reaching $3,495 in June 2013, $6,233 in April 2014, $10,899 in Sept. 2014, $18,712 in December 2014 and culminating in a parabolic peak price of $31,672 on January 16th, 2015!
Well known chartist Nick Laird (
www.sharelynx.com) has been following the gold market for at least as long as there’s been an interweb. He has used and talked quite a bit about
Elliott Wave Theory, which is a not entirely uncontroversial method of linking investor and broader social psychology to market trends (and sometimes
vice versa), often over decades-long periods. Elliott Wave Theory has had some notable successes and failures, and has its fair share of proponents and detractors…The fact is that for better or worse, EWT has very much a firm hold in many investors’ minds, and for that fact alone it is to be discounted out of hand at one’s peril.
Laird, with help from Geoff S, has put together an Elliott Wave theory prediction using ‘The Golden Mean’ & ‘Fibonacci Sequences’ [see chart below] to arrive at the above future prices for gold…He is hopeful that it will serve as ‘a roadmap which gold may take as it climbs to new highs‘.
Click to enlarge chart
Nick’s comments:
The first two uplegs (blue line) generate (through the formulas) the future uplegs (red line) as the price heads to it’s peak at W5(5). The Time, Price and Percentage of each leg up & down are shown on the edge of the chart.
So having left W4(A) behind the next 16 months we are heading up to W4(B). Presumptions are that the blue line (actual gold price) will stay above the red line for the first 1/2 of the next upleg falling to below the red line for the second half of the upleg and rising steeply into the peak of W4(B) as gold likes to do.
Perhaps gold’s final top is W4(D) or W5(1) or higher and perhaps the timing doesn’t play out right but this presumably will be something close to the shape of gold’s rise over the next few years.
Exciting stuff for gold holders. It’s not really for me to comment on whether or not I think this will or won’t happen, as all things are possible,…however, I can, I think, bring myself to point out the obvious. If $32,000 gold in 2015 were to come to pass then it would essentially accompany a devaluation of the dollar so quick, and so hard, that it would make your nose bleed.
The [above] chart is not just a roadmap for price acceleration in gold. It is essentially the road map for the disintegration of an empire, the ruin of the world’s reserve currency, and a time of fear not seen since Europe in the late ‘thirties. For that reason, if no other, then even though I own gold myself and would like to make a bob or two out of it, I hope that Nick is wrong. I hope that he is very, very wrong.
[I’m certainly going to be bookmarking this chart and checking back from time to time. If it works out with reasonable give and take then I think Nick will achieve Guru status within the precious metals internet community!]
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