Gold Price Forecast: Gold Won’t Bottom Until Next Year (2016)

I hate to be the bearer of bad news, but our cycle work suggests an additional 12-18 months of correction before the Major bottom in both gold and silver prices. Now, before you get too upset let me explain why we are supporting such an unpopular view.

We have found that both gold and silver follow a particular set of cycles; these cycles are measured between bottoms or lows. Understanding cycles is crucial as they aid investors in timing market entries. Over the years, we have observed a somewhat predictable 8-year cycle in both gold and silver prices. This Major cycle eerily corresponds with the US presidential elections. Gold and silver prices make significant bottoms either a few months before or just a few months after each US Presidential election on every 8th year.

•    In 1976, the bottom came 69-days before J. Carter was elected.

•    In 1984, the bottom came 111-days after R. Reagan was re-elected.

•    In 1992, the bottom came 127-days after W. Clinton was elected.

•    In 2000, the bottom came 101-days after G.W. Bush was elected.

•    In 2008, the bottom came 11-days before B. Obama was re-elected.   

Below I attached a chart labeling each 8-year cycle bottom with potential areas of support for the 2016 bottom.

I'm expecting the $1,040-$1,000 levels in gold to be tested with strong buying likely entering then. Gold prices should rally nicely out of those lows, many will believe that gold and silver have finally bottomed. It’s then we may see a failed rally, with prices returning to the $1,000 level. Will gold prices hold the $1,000 once again? Maybe, but my guess is probably not, and if that level is breached we will likely see panic selling as many investors will throw in the towel. My low-end target on gold ranges from $875-$750 and on silver possibly just a few ticks below the $10.00 mark.

We will be continually watching and updating subscribers as the ultra-important bottom in gold and silver approaches. In the meantime, I'm saving up capital and compiling a list of quality miners that will be selling at rock bottom prices.

Once the 2016 bottom arrives for gold and silver, the next projected low will not arrive until 2024.

If you have any questions about gold and silver cycles or if you would like information regarding our various newsletter services you can find us at Chartseek.com or contact me personally at [email protected].