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Rarely has the price of Gold fallen by one third over a few years!

August 28, 2014

I have a friend who really likes betting on sports. He will watch and bet on certain trends – such as consecutive wins at home or a streak by a certain pitcher.

Taking this strategy to investing, which is really just another form of gambling, we see a trend in the gold market. Considering the chart below, since the 1960s gold has fallen more than 30% over 3 years 4 other times. Each of these times have marked a bottom in gold and the price began to appreciate shortly after. Here are the 4 instances:

  • in middle of 1970s the 1 year rolling performance fell by more then 30%
  • in early 1980s both 1 and 3 year rolling performance fell by almost 40%
  • in middle of 1980s the 3 year rolling performance fell by more then 30%
  • in late 1990s the 3 year rolling performance also fell by more then 30%

Gold Performance

Now we all know the price of gold could fall further but that fact remains in my head… The downside is limited and outside of a short term perspective the upside is far more likely.

Click here for the post that brought this to my attention.

 

Discussion
2 Comments

    I am going with the theory…………..there are 7 BILLION PEOPLE, and only about .30cents of silver available , for every tom, dick and harry…., and the gold is what the big boys want and have always wanted………..PRICES ARE GOING UP.

    Aug 30, 2014 30:49 AM

    This shows you just how successful the US/UK/Illuminati hegemony has become. The vampire squid has its’ tentacles everywhere now, controlling everything. Any alternative to their world reserve currency, from precious metals to other currencies, will be “managed” to zero.