Gold: Deja vu all over again.

The great Bull Market in gold in the 1970s was interrupted in Dec 1974. From Dec 30 1974 till Aug 1976, gold went from $195 to $104, about a 90% correction:

http://www.the-golden-goose.com/2012/07/gold-corrected-for-20-months-from-1974.html

Keynesians were chortling about the "archaic metal" all the while they pranced around that they have learned to control the economy and that Keynesian measures would work. In 1976 August, gold began to rally and before the Bull Market was over it went to 870 dollars an ounce.

Fast forward to today. Gold hit 1975 and some dollars an ounce in Sep 2011 and has been losing steadily since. Twenty months is up in June and Larry predicts gold to hit $1,030/oz before it turns around and enters the final rally. That would be a 90% correction. See why I use the Yogi Berra quote?

Here comes the hard question. Will gold go to 1,030 before it turns around? It could, but I do not think so. The fundamentals have turned in favor of the resumption of the gold rally. First, the US, EU, UK and Japan have all increased their printing. Second, the actual sales of gold and silver have increased so that Swiss refiners can not keep up with the demand. Third, we see the left-wing media chortling that gold is finished.

Will history repeat itself? If it does, gold will eventually end at 8-9,000/oz. However, if the US Dollar is dethroned as a reserve currency, no telling what will happen.