Appears it is about to lift off from the base it has been forming over the past several months

I am not a mathematician, but those knowledgeable about math have explained to me the difference between a parabola and a hyperbola. I’ll cut through the math to get to the key point. A hyperbolic rise in price is much faster than a parabolic one.

This distinction is important because the gold price in recent years has been rising at a hyperbolic rate, which is illustrated in the following chart.

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Given that the above charts show only weekly prices, and do so over many years, we cannot conclude that the final hyperinflationary blow-off will begin tomorrow, this week or next month. But we can conclude from the hyperbolic rise in the gold price that these currencies are on the path toward hyperinflation.

The never-ending debt issuance by the U.S. government that is accommodated by the Federal Reserve’s policy of ongoing “quantitative easing” means that the dollar is being destroyed. Its purchasing power is being eroded because the Fed is turning too much of this debt into dollar currency, which is causing people to accumulate gold as a safe-haven alternative.

Significantly, the above charts show that the U.S. dollar’s plight is not unique. Other national currencies are also being destroyed as their purchasing power erodes because of harmful central bank actions, and as one would naturally expect, the gold price is responding by rising against all of them. And gold’s hyperbolic trajectory suggests that the hyperinflation of the dollar and these other currencies is imminent.

The above charts paint a very bullish picture for the gold price. It appears that the price is about to lift off from the base it has been forming over the past several months, which has consolidated the huge gains made by gold since the collapse of Lehman Brothers in September 2008. In other words, get ready for a moon-shot in the gold price and hyperinflation.

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Published by GoldMoney