Saturday, July 21, 2012
Hyperinflation, February 2014?
The second chart shows goldâ€™s established hyperbolic course. This chart was put together by Armand Koolen, a Dutch physicist, after reading James Turkâ€™s and my writings on gold and economics. In Koolenâ€™s words, the hyperbola fits in with the official gold price in the early 1900s, the revaluation to $35 in 1934, the onset of the secular bull market in 2001, the bottom in October 2008 and its approximate track since then. His discovery is interesting. Singularity for this curve, or the point where the gold price goes to theoretical infinity, is in February 2014, only 26 months away. Unless this long-term trend is somehow broken, gold is also telling us the dollar is heading for hyperinflation.