Your basket is empty
Buy Gold Bullion
MasterCard SecureCode Verified by Visa
You are not signed in | Sign In | Register

Gold May Fall to $1,100 then Explode to New Highs

Tuesday, June 3, 2014

Gold could fall to a low of $1,100 per ounce then rocket to new highs in late 2015 or early 2016 according to a prediction made using the Elliott wave principle. Similarly, silver is expected to fall to a low of roughly $17.50 before a sharp climb to $60 in 2016.

If this prediction plays out as expected, those who have maintained a bullish outlook on gold and silver stand to gain the most.

The gold price has been following a typical Elliott wave cycle, and the overall supercycle which started in 2000 has not yet completed. Assuming this cycle continues, gold should see another surge with a peak near the end of 2015. However, before that, the price may well fall to a low of just below $1,100 which would be the fourth retracement since the 2011 high of $1,960. This low point may happen in July or August 2014, but it is anticipated that there will be a very swift recovery to a high of around $2,400 by late December 2015 or early January 2016. This would signify the end of the current wave pattern and would be followed by a period of decline in the gold price.

It has been said that there are three main swings during a price cycle and these have become known as the SHOCK-POP-DROP. The SHOCK was a sell off that occurred in March 2009 sending the market to new lows. The second phase started shortly afterwards and caused a huge increase in the price. Despite a few short term dips, the Elliott wave cycle predicts that the overall POP will continue until the end of 2015.

If these predictions turn out to be correct, people holding gold and silver will see phenomenal gains with a doubling in gold and a trebling in silver in a time frame of just 18 months.

All of this sounds like a good opportunity to buy gold and silver for a medium term investment.