If you haven’t seen the action in gold, silver and mining shares, you are indeed missing the opportunity of a lifetime!
Let me show you first, by way of a few charts. My long-term charts based on a combination of hidden Elliott wave counts and my system models, which include 20 levels of analysis, ranging from cyclical models, to chart analysis, to my system buy and sell signals, which are based on a proprietary method of investing and trading which I will soon be teaching in a course.
Let’s start with gold: Here is the long-term chart of gold. The waves — up and down — in gold are labeled.
As you can see, wave 1 up in gold took it from its fixed price when we were on a gold standard, to the 1980 high at $875 an ounce.
Then, wave 2 set in a 20-year bear market.
Then, the latest bull market, wave 3, which lasted from the bottom in 2000 to the high in September 2011 — taking gold from $255 in late 1999 to $1,921 in September 2011.
The next big move in gold was the three-year bear market from 2011 to the recent lows.
Fortunately, I was able to forecast every one of those moves, in advance. Back in the late 1970s and ’80s, when I was on Wall Street at my brokerage firm that I owned, and since then, through my columns and articles in Safe Money Report, Real Wealth Report, and here, in Money and Markets.
In 2011, just 12 days after the top in gold, I said the precious yellow metal would bottom in 2014.
Here we are, in the middle of the year, and gold, in my opinion, based on all available evidence and all my models and indicators, has bottomed.
Up next: Wave 5 higher on that chart. Wave 5 in Elliott Wave terms, in commodities, is the most powerful leg higher of all of them. More powerful than waves 1 and 3 up.
And based on all of my projections, I believe gold is now headed to well over $5,000 an ounce. Probably by late 2016 to mid-2017.
Sound improbable? Well, consider this: Between 1978 and 1980, gold rose more than 390 percent, soaring from $178 in November 1978 to $875 in January 1980. And that was a 5th wave higher of a lower degree wave 3 move up.
So this time around, it would hardly be surprising to me to see gold more than double in two short years.
Here’s the same type of chart for silver. The pattern is roughly the same.
Silver is now embarking upon a wave 5 move higher that will take it to well over $125 an ounce over the next few years.
The actual gain in silver, yes, will be greater than gold. But silver will be notoriously wild in its movements, and why I recommend investors put more emphasis on gold. It’s safer, it’s the blue-chip metal of the precious metals.
Now let’s look at mining shares, via the HUI ARCA Gold Bugs Index — a basket of 15 of the largest and most widely held gold miners.
As you can see, the main waves are labeled for you.
But there’s a major difference which translates into this: Mining shares are actually more bullish than gold and silver!
How so? It’s simple. According to all of my research and indicators, the mining sector is now starting a third leg higher of a higher degree cycle!
Since third waves are the most powerful wave in equities, as opposed to commodities, it also means we should see the mining sector literally explode higher out of the gate, and probably more than quadruple, perhaps even quintuple, in the years ahead.
And the proof is already coming in. Consider, since the beginning of June …
Allied Nevada Gold (ANV) is up as much as 58 percent.
NovaGold (NG), up 48.6 percent.
Detour Gold (DGC.TO), up 56.6 percent.
Coeur Mining (CDE), up 39.6 percent.
Direxion Junior Gold Miners ETF (JNUG), up an astounding 115.2 percent, in a month!
What’s driving it all? In my book, the answer is simple, yet different from what most believe:
It’s the rising tide of geopolitical unrest
that is occurring all over the globe.
That’s the primary force that is driving precious metals and mining shares higher. Now, and for the next several years.
Inflation will become a factor too, but not until gold passes its inflation-adjusted value, which is about $2,300 in today’s dollars.
So if you wait until then, I’m afraid you’re going to miss out big time as the train leaves the station without you.
And keep this in mind: If you study the history of gold as I have done, back over 5,000 years, you will see that gold’s most important role is NOT as a hedge against inflation …
But instead, as a hedge against collapsing governments and geo-political risks …
Best wishes, as always …