Friday, June 24, 2011

Gold headed to $5,000 per ounce?

After writing an article about the Platinum-to-Gold ratio, I decided to do more with the excel sheet, like calculating correlations and plotting the price charts for example.
In this article, I will just focus on the Gold price.
Here we go, the Monthly average Gold Price since January 1968:


It looks a bit bubbly, right?
If you think this looks like a bubble, then please have a look at this Log-scaled chart, which looks far from bubbly:

The thing I observed was that the price action in Gold from early 2000 until today was similar to the price action from 1968 until April 1979. Let me show you:
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