Right now, the gold BULL-ion bandwagon is more crowded than a New York
subway train during rush hour. But before you squeeze your way into the
crowd of passengers, you should know one thing: Those steering the course
are using outdated maps based on ill-conceived notions and illusory hopes.
Where can you get better information about gold and silver? Take a look
at the latest FREE resource from Club EWI, the Gold
and Silver eBook. This riveting, 40-page eBook pools the recent
and archived writings on the precious metals by EWI president Bob Prechter
himself. The result is a comprehensive collection that spans the last
four decades of gold and silver history to expose the most dangerous
market myths. Off the top is this familiar bit of “wisdom” from the school of Alan Greenspan:
It is impossible to foresee the end of major trends in
precious metals
BEFORE they occur. Hindsight is foresight.
NOT SO, says Prechter. Since gold and silver established
their all-time record peaks in 1979-80, he has stayed one
step ahead of the metals’ history-making turns. Here, Chapters
2 and 3 of the Gold & Silver
eBook offer up the following excerpts from Bob’s earliest writings:
Silver
- November 18, 1979, Elliott Wave Theorist (EWT): With
silver prices hovering near $20/ounce, Bob wrote: “If
my wave count is valid, silver can be expected to drop
back down to between $4 and $6, $3.20-$3.49 some time
in the next decade.”
What actually happened: From there, silver
prices embarked on a 13-year bear market that saw prices
plunge into the $3.50-per-ounce area.
- March 26, 1993, EWT: “Silver is approaching
a major bottom” of its decades-plus long downtrend.
What actually happened: Silver found
its low in 1993.
Gold
- December 9, 1979, EWT: “After 13 years
of rise, Elliott counts now suggest an important top
is near in gold. The downside target is at least $282.50.”
What actually happened: While the price
projection for gold’s peak was far off the mark (the Theorist cited
the upper $480/ounce range), the time target of early 1980
was met with accuracy. From its 1980 peak, gold prices
plummeted nearly 70% before hitting bottom in 2001.
- At the Crest of the Tidal Wave, 1995: “One attractive
termination date for the gold bottom is New Year’s
Day of 2001 (plus/minus a month). That way, it will have
lasted a … a lean 21 years from the 1980 peak.”
What actually happened: Gold registered
its low at $255 on February 20, 2001.
Now that we can see that it is possible to benefit from
foresight about the end of major trends in precious metals,
what about these other popular notions —
- Gold always goes up in recession and depressions.
- Gold always performs better than stocks in economic
downturns. - Gold and Silver are just beginning (as in the year
2010) their biggest bull market runs ever.
Download
Robert Prechter’s FREE 40-Page Gold and Silver eBook. Is
gold a simple buy-and-hold at today’s prices? The
independent insights in this valuable ebook deliver
Prechter’s complete analysis and help you decide
how to – and how not to – incorporate
gold and silver successfully into your own investment
strategy. Learn
more, and download your Gold and Silver eBook here.
Nico Isaac writes for Elliott
Wave International, a market forecasting and technical analysis
firm.
Disclaimer: Please note all prices are for information only, they should not be relied upon for accuracy or trading. All prices quotes are based on CFD prices and are similar though not always identical to real exchange prices. STOCKTRKR or anybody connected with STOCKTRKR will not accept any liability for loss or damage arising from use of any information/commentary/charts or articles which is provided 'as is' for educational purposes only, nothing contained on this website should be considered as investment advice - please seek proper investment advice from registered financial broker or institution if you wish to trade on global markets and ensure you are familiar with the risks.
