Gold Set To Rise While Debt-Based Assets Collapse

Monday, August 14, 2017
By Paul Martin

By: Hubert Moolman
GoldSeek.com
Monday, 14 August 2017

In a previous article, I have shown how economic conditions, today, appear very similar to that of the early 80s (circa 1983). These similar conditions show up on the long-term gold and Dow charts, as shown in that article.

Now, if those similarities continue, then the Dow will continue much higher from this point on, while gold will go into a long-term bear market. However, I have also pointed out that there are just too many fundamental obstacles, that would make such a scenario almost impossible.

One of the biggest obstacles is the fact that unlike the 1983 scenario, we are currently right after a major interest rate bottom. This prospect of higher interest rates going forward, will act like a strong wind pushing gold higher, while keeping debt-based assets, like the Dow and bonds, down (read more on why this is the case).

On the contrary, the 1983 scenario, came just after the long-term interest rate peak, which had the opposite effect, pushing gold down, while elevating debt-based assets like the Dow and bonds.

The similarities to 1983 are reflected in the long term chart for gold:

The Rest…HERE

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