Gold got ahead of itself. We had this breakout rally. Everybody saw that. Everybody was piling in. You're seeing targets of $50 in silver and $3,000 in gold. Absolutely yes, but not yet. We have stretched the price too far above this long-term mean and the momentum has cracked.
Once the momentum has cracked, one of two things has to happen: either you've got to go sideways for a long time to allow the moving average time to catch up. Or you get a scary correction. And you can see that is exactly what happened here. Gold for about three years was moving sideways and then we had that scary final correction down into that eight-year cycle low.
Then we started a new eight-year cycle. During this eight-year cycle, this is where the breakout is going to come. That breakout generates massive bullish sentiment and then you get these insane targets. Again, I think those targets are going to be met. But really, we don't want them to be met right now. For Gold to go straight to $3000, it would almost be a bubble.
...Right now, we want to stay in the wall of worry for as many years as possible. That will produce the highest move at the final bull market top.
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