Europe 2020: "Both metals are in a bull-marke,t which started in 2001 for silver and 1999 or 2001 for gold after a bear market since 1980. And what was before? (Graph11) shows you the price of gold since 1800 in US$ with an Elliott wave labeling. According to that labeling, this bull market is a fifth wave and the next one too. Fifth waves in tangibles are driven by fear, the strongest human emotion and therefore the biggest price moves take part in these parts of the bull market. Around 150,000 tonnes of gold have ever been mind by mankind and maybe 90% or 2,500 bio US$ are still around, but not liquid as lots of it disappeared in jewellery. Central banks say they hold 32,000 tonnes, but reliable research by many writers on this page come only to around half of it. Relative to a total world debt of at least 120,000 bio $US, gold is scarce and confirms the fifth wave.
Goldmines are scarce too as the capitalisation is only about 150 bio US$, relative to world stock markets of around 25,000 bio $US. Mines or metal? (Chart 12) shows the gold mining index HUI divided by silver. Mines have been stronger than silver, but are due for a corrective move against silver. Is gold cheap? Graph 13 shows the Dow industrial against gold since 1792. In 1869, at the top of the gold bull market and the end of the US Civil War, 0.17 ounces bought on Dow Jones. If the Dow Jones would drop to 5000, it would need 29,000 ounces to achieve the same ratio. Can the crisis become that heavy? Graph 14 shows Zurich real estate in gold in 1900 one ounce bought 2.9 square meters of real estate, now around 0.15. Zurichs, sell your house, buy gold and you will get at least 30 of them!! Graph 15 shows gold in real terms measured against the Swiss CPI (it's probably less cheated than the US CPI)."
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