Gold Price Forecast: Twice Per Century Signal Says Depression Ahead

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A signal has just appeared in the global financial markets which has only been witnessed one other time in recorded history – and it foretells of immense trouble for the world economy ahead.

What is the signal?

The gold to silver ratio – it has just shattered its former all-time highs.

When is the only other time in history that the gold to silver ratio has broken out to a new all-time high?

At the start of the Great Depression, in 1930.

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Gold Price Forecast: A Significant Top Is Ahead

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While those without any precious metals exposure whatsoever would be wise to establish a core holding as an insurance policy against unprecedented central bank monetary debasement, there are important warning signs appearing within the market which show us that precious metals may be due for a significant retracement of the recent gains. It is possible that the retracement may start following one final surge; however, our highest expectation remains that gold is due to give back at least several hundred dollars of its recent advance within the coming year. Investors should be careful about chasing recent price gains.

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Gold Price Forecast: Coronavirus And Deflation Grips The World

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The coronavirus has rapidly taken center stage in world affairs over just the last month. With its terrible human casualties comes a nasty financial side effect: deflation.

The US stock market has just witnessed its worst weekly decline (-11%) since the Crash of 2008.

Oil prices fell more in a single day on Monday, March 9 (-33%) than on any other day in the post-Bretton Woods (1971) era.

Meanwhile, gold prices have touched 6-year highs above $1,700 this week.

This is deflation, loud and clear. Deflation can be defined as a period when the prices of goods and services fall; conversely, during deflation, the purchasing power of money rises.

Gold is the world’s oldest store of value – as such, it should rise increase in value during deflation when compared to other assets.

So, is now a good time to buy gold?

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