Very few investors are aware of the extremely strong correlation between gold and the U.S. budget deficit. During the most recent and (most likely) final trailing twelve month U.S. budget surplus, which lasted from January 1998 through March 2002, gold traded at its most depressed prices in decades remaining in a narrow range of $256.08-$310.72 per oz. During this 51 month time period, gold averaged a price of $281.30 per oz, its lowest price since June 1979 on a nominal basis and its lowest price since January 1973 on a CPI-adjusted basis.
Over the past decade, the closest the U.S. has come to a balanced budget is a trailing twelve month U.S. budget deficit of $405.265 billion, which was reached in January 2016. It is no coincidence that exactly one month prior to the U.S. budget deficit reaching its lowest level of the past decade, gold reached a cyclical bear market bottom in December 2015 of $1,050 per oz.
From January 2016 through March 2020, the trailing twelve month U.S. budget deficit has increased by 155.83% to a current level of $1.036 trillion. Based on the median gold/budget deficit ratio from September 1981 through March 2020 and the current trailing twelve month U.S. budget deficit of $1.036 trillion, gold currently has a fair value of $1,772 per oz, which is extremely close to the current gold price. Unfortunately for the U.S. and all American citizens except for NIA members who own gold and gold mining/exploration stocks... there is a 100% chance that April 2020 will be the largest monthly budget deficit in U.S. history!
This month's budget deficit will be so large that it will most likely cause the trailing twelve month U.S. budget deficit to immediately double to over $2 trillion! By the time fiscal year 2020 ends in September, it now appears likely that the trailing twelve month U.S. budget deficit will exceed $3 trillion! NIA has just published an exclusive must see chart displaying what gold's fair value is about to rapidly rise to based on the trailing twelve month U.S. budget deficit reaching $2 trillion this month and $3 trillion for the full fiscal year ending in September 2020!
Gold's fair value based on the U.S. budget deficit is about to explode from $1,772 per oz today to $3,418 per oz at the end of April 2020 and $5,127 per oz at the end of September 2020!