Gold price could triple if 1970s bull market pattern holds, says Jeff Clark
(Kitco News) – Gold’s sharp correction this year may be unsettling for investors, but one market strategist argues the precious metal remains firmly within a historic bull market that is tracking one of its most historic rallies almost “tick for tick.”
In an interview with Kitco News, Jeff Clark, publisher of The Gold Advisor, said gold’s current decline closely resembles the correction seen during the legendary 1970s bull market, which ultimately culminated in one of the strongest advances in the metal’s history.
“I charted the correlation between our current gold bull market and the one from 1976 to the peak in 1980,” Clark said. “Believe it or not, the correlation coefficient between those two bull markets is 95%.”
Clark said the comparison suggests the current correction may be a normal and healthy part of a much larger advance.
“At this particular period in the 1970s bull market, gold crashed,” he said. “It crashed, and then it immediately rebounded. And guess what’s happening now? Gold is crashing. We’re matching it. It’s almost tick for tick.”
Clark noted that if the correlation continues to hold, gold would have to nearly triple from current levels to match the full magnitude
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