The new historical maximums of gold to come

Gold peaked to a new high, boosted by a demand from investors looking for a haven in times of economic uncertainty.

During the bull market of the 1970s, gold went from trading on the markets at $35 an ounce to $195. That represented an increase of 458%. The 21st-century bull market brought gold from $252 an ounce to $1,920, with a 661% increase.

It appears that the current bull market surpassed that of the 1970s. However, it only took around five years (1970 to 1975) to obtain a 458% increase. Alternatively, it took approximately ten years and five months to get the 661% increase. If the current bull market performance matches that of the 1970s, prices should probably have risen by more than 1,000%.

The decline from the peak of the early phase of the 1970s led gold to drop from $195.5 to $102.2 in 1975 by 47.7%. The fall from the bull market in September 2011, led gold to drop from the all-time high of $1,920 to $1,041 in late 2015, by 45.8%.

However, the decline numbers were almost identical: 47.7% vs. 45.8%. The decline in the 1970s took about a year and nine months to arrive. Meanwhile, the fall since 2011 took four years and three months.

The decrease period in the 1970s lasted approximately 35% (1 year, nine months / 5 years) of the increase period. Meanwhile, the decrease since 2011 was about 40.8% (4 years, three months / 10 years, five months) of the increase period. This shows that the falls were almost similar to the period of price increases.

Things take longer, but go further

According to Hubert Moolman, gold and silver analyst at Gold Eagle, these sets of data prove that things take longer in the current period, but go further.

The rise from 1976 to the peak in 1980 took about 41 months to complete, and gold went from $100 to $873 an ounce, up by 773%.

If we transfer these ratios to today, gold can match this increase, reaching $9,087 per ounce. Based on the performance of the first stage of the current bull market, it should easily be achieved, Moolman stated.

It’s been 55 months since gold bottomed out in 2015 at $1,041. Then again, gold tours take much longer to complete. Hubert Moolman concludes that this is the reason that gold seems ready to gain momentum and soon reach a new all-time high.