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The 34-year gold cycle guides liquidity flow from equity to gold, as money shifts from paper to hard assets. The 1967-68 Gold crises, which climaxed with the end of Bretton Woods system, followed the 1933-34 Gold crisis. Gold is a commodity leader more important than oil, as oil cannot replace money but gold can. That is why when the stock market peaks out and reverses trend, there is usually a rush to buy gold and gold stocks with investor funds obtained when industrial stocks are sold off as Dow Jones drops. After the low of business cycles is reached and recovery starts again, gold and gold stocks are sold off and funds reinvested. The equity v/s gold cycles for Nikkei, Dow and Sensex also suggest that we are heading for seasonally positive time for equities compared to Gold. read more

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