XL Gold Cycle

Written By Nick Hodge

Posted October 13, 2014

Despite what you may have read on the Internet or seen on television, there are several reasons to be super bullish on gold…

As a simple indicator, you can look at the Dow/Gold ratio. This is a way to value gold based on real terms… not hypothetical ones.

The historical average of the Dow/Gold ratio is 4:1. That means on average throughout history, it’s taken four times gold’s price to equal the point value of the Dow.

To get back to the historical average with the Dow near 17,000, gold would have to be trading around $4,250 per ounce.

However, during XL Gold Cycles, the Dow/Gold ratio tends to gravitate towards a 1:1 ratio.

This happened in the 1930s and the 1970s — the last two XL Gold Cycles.

The price of an ounce of gold (rather than four ounces) would equal the point value of the Dow.

In fact, we saw this happen the last time the XL Gold Cycle turned over.

On January 21, 1980, gold hit $850/oz., while the Dow was valued at 872.78 — nearly one to one.

If that were to happen today, that’d put gold all the way up to $17,000 per ounce.

It’s critical you know more about XL Gold Cycles today. Our sister publication, Outsider Club, has published a full report on it to get you ahead of the curve. You can find a link to that report on this page: XL Gold Cycle Makes Millionaires Like Clockwork.

Call it like you see it,

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Nick Hodge

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Nick is the founder and president of the Outsider Club, and the investment director of the thousands-strong stock advisories, Early Advantage and Wall Street’s Underground Profits. He also heads Nick’s Notebook, a private placement and alert service that has raised tens of millions of dollars of investment capital for resource, energy, cannabis, and medical technology companies. Co-author of two best-selling investment books, including Energy Investing for Dummies, his insights have been shared on news programs and in magazines and newspapers around the world. For more on Nick, take a look at his editor’s page.

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