Gold has finally shot through the critical barrier of $1,370 to come
within reach of $1,400. This seems to mark an end to a bottoming process
in the gold price that has lasted almost 6 years. It is remarkable that
gold has now broken out in dollars. Gold had already broken out in
almost all other currencies. This too is a sign that we are at the start
of a new upward trend.
What we want to see in the coming days is for the gold price to
remain above $1,340. This would confirm that the road to the $1,500-
$1,600 barrier is open. We expect that all dips will be bought
aggressively from now on.
Well-known technical analyst Peter Brandt confirms that gold is
completing a multi-year head and shoulders pattern, and he has a target
price of $1,899 for the metal, close to the old high of 2011. After
that, his next target for the coming years is $2,637. Another famous
analyst, Avi Gilburt, who correctly predicted both the 2011 peak and the
bottom in 2016, wrote last week that should gold break through $1,370
in the coming days, he anticipates a fast and strong rally based on the
Elliot wave principle.
This movement is a signal for our fund to review the portfolio and to
add more precious metal producers. Gold producers struggling at a gold
price of around $1,300 are a lot more profitable at a price of around
The gold/silver ratio has now risen to over 90 for the first time in
30 years, which means that silver is more than 90 times cheaper than
gold. Now that gold is rising, silver will move with it and will
probably accelerate even more. We are going to raise the silver
percentage in our portfolio, from 6% to 10%.
Ruben Bijman en Willem Middelkoop