by Hubert Moolman
Hubert Moolman’s Blog
Silver and Gold Price Forecast:
In a previous article (September 2015), I presented the following analysis (in italics) to show how we are close to a point were a significant event could happen in the bond market and/or gold & silver markets:
[…] Above, is a chart (from) that shows the ratio of the gold price to the St. Louis Adjusted Monetary Base back to 1918. That is the gold price in US dollars divided by the St. Louis Adjusted Monetary Base in billions of US dollars. So, for example, currently the ratio is at 0.28 [$1 125 (current gold price)/ $4 019 (which represents 4 019 billions of US dollars)].
On the chart, I have indicated the three yellow points (a) where the Dow/Gold ratio peaked. These all came after a period of credit extension, which effectively put downward pressure on the gold price. Points 2 were placed just to show the similarities of the three patterns.