Historically, Gold Is Not Cheap At Today's Prices

"Would I say there will never, ever be another financial crisis?   You know probably that would be going too far, but I do think we're much safer, and I hope that it will NOT be in our lifetimes and I DON'T believe it will be." -Janet Yellen

Possibly, yet probably NOT in your lifetime Janet since you are what, say eighty years old? Oh, only seventy, sorry acquiring sage wisdom must age a person.

Isn't it quite obvious that our situation is as serious as a heart attack, we are NOT any safer and the ONLY option you have left is to lie?  Lie like a dog, lie like a rug or lie through your teeth!  It is like one turtle standing on top of another turtle, standing on top of another turtle and another.  The corruption never ends, just as we saw in the past two weeks as metals price got slammed to benefit the Central Banks whom sell their paper options in mass while bilking those whom who own real metals of value.

I have written two articles concerning how one ounce of gold could again buy the DOW (1:1 Ratio). This would mean that the price of gold would rise to $21,000 but since THEY will never allow that to happen.  The more likely scenario is a market crash of 60-90% sending gold to $8,400-$12,600!

WHAT HAPPENS WHEN THE DOW DROPS & THE DOW TO GOLD RATIO CLIMBS?

ONE OUNCE OF GOLD WILL AGAIN BUY THE DOW!

Just kidding, because they won't let that happen either, unless THEY are no longer in control and China, India and or Russia gains control of our broken commodity markets by owning the most gold.  Asia has rejected the West's unsound money system and is fixing it.  American's will suffer greatly when a new gold backed currency rules the global world.  The hegemony of the U.S. will have ended and we will become just another third world country replete with lots of immigrants with no opportunities, no jobs, food shortages and entitlement woes no government can fix.

Remember the Wizard of ID comic strip of the sixties and seventies?  In the first comic panel we see a small, tyrannical king addressing his subjects from the balcony of his castle and emphasizing the need for "peace and harmony".   The second panel depicts the King as he continues his speech stating,   "We must all live by The Golden Rule".  This causes much confusion among the slow, dim witted populace who are starving, cold and hungry, but then the king's courts troubadour stands to deliver the explanatory punch line.  "Whoever has the gold makes the rules!"

The 'Casino Paper Market' end game will steal the private individual's store of wealth again.  The turtles believe they can engineer the economy, the markets and create endless growth. They can because they have the world's printing press to do so.  You have NO GOLD when you are invested in paper markets.  Daily, I meet doctors, lawyers, engineers and business owners and ALL their investments are paper.  These are really intelligent people one would surmise, but not so much. They honestly believe they are safe and protected because they are protected and diversified because they have GLD gold stocks or SLV silver stocks.  Soon they will receive the education of their lifetimes, one they will NEVER forget.  They will grow old reliving their stories about the pain they have suffered and how they were swindled out of their life's savings in an effort to spare their children and grandchildren.  They will attempt to educate their offspring to save them from hard life lessons suffered at the knee of, 'the mother of all educations, experience'.  Their words will fall on deaf ears while the children only hear mere ranting of a fossil suffering from old timers.  They will nod their heads suggesting agreement and absorb no true understanding but one day, in another decade, they will recall his words but it will be too late.  So history repeats itself, over and over.

My best guess is, that in the next 3-15 months, we experience a 57% drop based on the 2007 drop in the stock market to 12,255 points or maybe much worse.  Next, if we utilize the average DOW to Gold ratio over the past twenty years of 20:1, we COULD see a gold price of $612 dollars.  The gold volatility rate is at new all time lows, which means the gold market is less and less appealing to traders and investors.  Sentiment is extremely low as gold has dropped 44% and has been moving sideways trading between $1200 and $1250 from 2013 to 2017.  Gold sentiment is downright boring and hands are being shaken loose and dis-hoarding is happening.  Selling is only brisk, since the first of the year, on dips in the $1125 to $1220 range.

This gold chart shows what I am thinking we are seeing with the price framework of gold.  The basis for this study I have referred to before and comes from a wise trader 'way back when'.

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