Alf Fields on Gold Wave 3

As Alf Fields predicted last fall, $699 was the low. So, we are definately in the 3rd Elliott wave up to $3,500. It could be a few years before we get there. Time will tell. I publish this quote, so the large dips in gold don’t bother you. We would have to dip BELOW $700 to break this wave. (Update: November 13, 2009, we are still in wave 3, we now must fall below $730 to break the trend.) No margin, use dips to buy in, never sell. This is your insurance for currency crisis, deflation and hyperinflation. It covers everything. If you want to sell a portion of your gold during wave 4, that’s OK, but do not miss holding the majority of your savings in gold/silver during wave 5. Wave 5 will be quick in action.  If you think you might miss it, hold gold through the wave 4 decline. Wave 5 is the currency crisis, super-hyperinflation period.

Assuming that the $699 low on 23 October 2008 turns out to be the actual low point of the correction, and that remains to be proven, then we can conclude that we have seen the low point for Major TWO. That will allow us to update my original “back of the envelope” template to much higher levels, as follows:

Major ONE up from $256 to $1,015 (actually 4 times the $255 low);

 

Major TWO down from $1015 to $699, say $700 (a decline of 31%);

 

Major THREE up from $700 to $3,500 (a Fibonacci 5 times the $500 low);

 

Major FOUR down from $3,500 to $2,500 (a 29% decline);

 

Major FIVE up from $2,500 to $10,000 (also a 4 fold increase, same as ONE)