I've taken another look at where gold price might be expected to go by the time it peaks in the mid 2020's. I've used the log chart. Why ? Because we're 'measuring' the value of gold in dollars here, and dollar 'creation' is taking place at an exponential rate. Just take a look at the chart for US National Debt. The lower range of possibilities on this chart gives us something around $3000, whilst the upper range takes us 10 times higher than that ! Not much of a forecast you might think, but it'll become clear if the higher target is a possibility as we go along. If we were to break the old highs either this year or next, for example, I'd say these higher numbers come into play, with several years of rising PM prices in this 16 year cycle.
As far as the mining indices go, I've realised that the final target is pretty much anybodies guess. It is almost certain to be many multiples of the current values. HUI is currently just above 200, and needs to jump to around 280 to be where it was the last time gold was $1350. From there we should expect to move past 600 and if gold moves to $3000, what do you think is reasonable ? and what if we get $5000, $10000, or more ?
Here's the chart...
