1976 correction and now – what it could mean

In the last secular bull run of the 70’s there was a mid market correction like we’ve just seen this year where the price dropped below the 55 MMA in 1976.  That correction lasted 187 weeks before it came back to where it started.  Its been 118 weeks since the 2011 top of gold prices (135 weeks for silver) and most consider we saw the bottom on 28 June this year.  From the low in 1976, gold prices rallied by 850% and silver prices by a whopping 1200% to their peaks.  So if history is repeating we would see gold prices back to $1900 and silver prices to $48 around the end of next year and then go on to around $10,000 and $200 respectively.  But consider the post ’76 silver rally also went from a gold:silver ratio of 25:1 to 18:1.  Off the current 60:1 ratio, to get to the 18:1 in the same fashion would see silver at around $600/oz.