The following is from Jeff Clark, writing for Casey Research. I, for one, do believe the current bull market will mirror the bull market in the 70s. If it does, the big gains are directly ahead.
“While history doesn’t always repeat itself exactly, previous peaks and corrections have proven to be reliable reference points. Below is a comparison of today’s situation vs. the 1976 correction and recovery.
Is gold’s downturn over? Judge for yourself”
Here is the latest analysis from John Willliams (Shadowstats) below:
No. 572: October Employment and Unemployment
– Large Shift in August-October Period Seasonal Adjustments Bloated Latest Payroll Reporting
– Loss of Long-Term Unemployed from Headline Labor Force Boosted Alternate Unemployment Rate to New High
– Government-Shutdown Impact on October Unemployment Reporting
– Masked by Misclassification and Seasonal-Adjustment Fiasco
– October Unemployment: 7.3% (U.3), 13.8% (U.6), 23.5% (ShadowStats)
–Shadowstats.com, November 8, 2013
Richard Maybury’s U.S. & World Early Warning Report is an exceptional newsletter and I always enjoy his comments on gold. This is what he had to say in his November/December issue 2013:
Perhaps my most important crown jewel is gold. In demand for 60 centuries, gold’s track record is unequaled by anything. Through revolutions, plagues, inflations, world wars, earthquakes, plagues, inflations, world wars, earthquakes, hurricanes, deflations, the Dark Ages and every other type of disaster, the yellow metal has always retained at least some of its value. Nothing else compares, except silver, which goes back 26 centuries.
Gold is especially seen as financial insurance against war and currency debasement, which are the two long-term trends on which nearly all EWR advice is based.
When 9-11 happened, gold was $271.50. The subsequent political and economic chaos drove it to $1,917.90 on Aug. 23, 2011. As we go to press, it has dropped back to $1,346.40.
If you think wars and currency debasements have ended, don’t buy gold.
Gold is not a paper financial asset that depends for its value on the honesty and prudence of governments. It’s real stuff.
He then went on to say:
I realize it’s disturbing to be talking about the monetary catastrophe, and the wars and revolutions that are apparently on the way, but would you rather not know about these things? Would you prefer to be caught by surprise?
I will continue doing all I can to help you get ready for the fascinating times that may now be close. Preparation creates opportunities.
–Richard Maybury, November 6, 2013
That sums up exactly how we feel at Miles Franklin. We couldn’t have said it better.