"Every 21 months there has been a major peak in the gold market," notes David Nichols
Mark Twain wasn't writing about the gold
market when he made his famous quote about historical recurrence, but he could have been, as the gold
market has been "rhyming" every 21 months.
Every 21 months there has been a major peak in the gold
market, going back to the start of this bull market, over 13 years ago. Gold
is now 8 months from the next scheduled 21-month peak, which should arrive in July 2013.
The gains in each cycle have ranged between 80% and 97%, from the low of each cycle up to the top. This is surprisingly little variation, at least as far as financial markets are concerned. This is about as steady as it ever gets.
If it happens again, gold
will be around $2,700 in mid-2013.