How Musa's Gold Changed the World
Philip Hopf | Mar 22, 2021 15:44
How Musa's Gold Changed the World
Although we are today experiencing money flows, GDPs, and index quotations like never before in the history of mankind, the wealthiest person died almost 700 years ago and is still unmatched in his wealth to this day. Mansa Musa, aka the Lion of Mali, made history with his unimaginable wealth. Whoever hears his name immediately thinks about masses of gold. It is somewhat ironic that Musa's name is the Muslim name for Moses, who was everything but rich in material terms. Maybe this symbolic connection to Moses gave Mansa Musa the strength to build such wealth and let his nation flourish under it. Under Mansa Musa's reign, the Sankore University in Timbuktu became a global hub of science and progress, hosting Africa's most extensive library after the library of Alexandria was destroyed centuries before.
Ladies and gentlemen, yes, gold can be this impactful. Mansa Musa was able to alter the world economy during his pilgrimage to Mecca, as he was pouring out gold to the poor. Of course, nobody has that much gold today, but the current situation in the gold market should put a smile on gold investors' faces, who entered the market on the long side in the trading zone that we have indicated. Over the last week, the Gold price increased slowly but steadily. Now, it has left the trading zone and is ready to tackle quotation further up North. This is entirely in line with what has been predicting for a long time. The next step in our primary scenario is that the price also increases to move past the resistance line at $1764. Until this is safely the case, there remains a 40% chance that the price drops and turns into an alternative scenario. If that happens, the low at $1673 should be adjusted slightly by moving a bit down.
Nonetheless, we would expect the strong upward move to set in after that. Anyways, sticking to the primary expectation, we expect the price to correct above $1764 before the next resistance at $1879 is aimed at. All in all, investors in this market can be expect rising prices.
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Accordingly, the news from the gold price also implies positive things for the GLD (NYSE:GLD). Here, the course also gaining value and is strictly following our outlined scenario. The next mark that we expect to reach is $175.51. However, until we get there, we should be aware that here, too, an alternative course of action might evolve, which currently has a chance of 40%. That would mean a price drop would occur and solidify the low point somewhere around $153.67.
So, we somewhat follow Mansa Musa's footprints and continue to move up in the gold market. Our imminent next target is to overcome $1764. After a short correction, we should also tackle the $1879 mark.
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