Sunday, September 13, 2009

GOLD Monthly historical chart of interest



I did some basic research with quite interesting results:

> '79 - '80 - it took 2 years for a 460% rally from $190 to $875

> then 3 years ('80-'82) = 86% decline in value, which resulted in 24 years of $250 range.

The $250 range represents 36% of the whole $190 > $875 move which happened in only 2 years - '79-'80.
.........................................

Now from 2006 break of the $500 level, in 3 years we had 200% range extension
(500 ->1000 = 200% of the $250, 24-year range)

What is most probable to happen after we saw 100% appreciation in 3 years (500 > 1000 USD)?
In scope of these historical events it seems it might go up easily another 500 USD.

NOTE: However let's not forget that it took already 9 years (2001 > 2009) for a 400% rally from $250 to $1033.

1 comment:

  1. Jackie Kennedy did very well in the gold trade 1976-1980. http://www.tradethepicture.com/mr-volatility/mr-volatility-comic-002/

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