An exceptional gold price historic chart

InvestingHaven/Taki Tsaklanos/12-30-2018

“What this 40-year gold price chart learns for 2019 and 2020 is that there is a fair chance that gold’s price will rise to the top of this channel provided that 1200 holds strong as a monthly close. That’s also what we have been repeating recently: the importance of $1200. As gold is getting a bid now we expect gold to rise to $1650 at a certain point where it will meet heavy resistance. This might happen in 2019 already but, for this, we need the lower time frames.”

USAGOLD note:  In this short, but fundamentally sound, study from Taki Tsaklanos, he makes a point we have emphasized for many years here at USAGOLD: “First, market-wise, the gold price started trading ‘freely’ with an open market in 1971, on August 15th. That’s when President Nixon took the U.S. off the gold standard. So any historic gold price chart should be after that date, as before it was not really relevant.” That is why most of our work on the long-term outlook for gold includes charts beginning in 1970-1971.

Economic analysis should be split into two eras – BDL and ADL, before and after the 1971 delinking of the dollar and gold. (In a recent seminar, Grant Williams of Things That Make You Go. . ‘hmmm’ fame used a series of our long-term gold charts to make the same point.)  Nixon commented at the time: “We are all Keynesians now.” The full implementation of Keynesian thought dreamed by academics had become an economic reality, and in the process and inadvertently cemented gold’s role as a long-term portfolio hedge.

Repost from 12-31-2019

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