Here’s another classic from the EWI forecasting vault:
It was the summer of 1980, and gold was rallying. It had reached $850 per ounce a few months prior, and investors were bullish as ever as it was climbing again.
But in his presentation at the National Committee for Monetary Reform Conference in Montreal, Robert Prechter warned the audience that gold was rallying in a bear market.
Gold and gold stocks topped at $720 two months later and lost ground for 20 years after that, falling to $260.
By early 2001, sentiment toward gold had turned sharply bearish. Check out this feature from Prechter’s February 2001 Elliott Wave Theorist:
Despite the negative sentiment, EWT said:
It is time to begin thinking differently about the precious metals. For those 21 years, we saw each intermediate-term rally in gold and silver as a short selling opportunity. Now it is time to begin thinking about how and when to buy.
What happened next? Gold made a low in early April 2001 and then soared higher for more than 10 years.
Our subscribers were reading us THEN—through the dust of the ‘80s and ‘90s bear market and into the surge of the 2000s bull market. Are you reading us NOW?
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