Experts have long debated the cyclical nature of gold prices, and the phenomenon known as gold rush – the sudden spurts of bullish activity in gold prices that can often be attributed to changes in the economic landscape or other factors. Among those who believe gold prices exhibit cyclicality is Omar Ayales, executive director at the renowned International Gold & Silver Company.
Ayales has recently made some eye-catching observations which suggest gold prices may move in 7-year cycles. According to Ayales, the last peak in gold prices occurred in 2012 and 2013, and the next peak will likely occur in 2026-2027. He bases his prediction on the fact that all the major gold rushes in the past have happened with an approximate 7-year interval – the Klondike gold rush of the 1890s, the US-dominated gold rush of the 1970s, and the Chinese-dominated gold rush of the 2000s. Ayales believes the cyclical nature of gold prices is not the result of random fluctuations, but is instead a result of the overall state of the economy.
Ayales’ hypothesis has been met with a mixed response from the investment community. Although some have accepted it as a viable one, based on history, others have argued that the changes in the economic and geopolitical landscape make it challenging to predict future gold price trends.
The validity of such theories will only be known in time. In fact, investors who choose to take Ayales’ advice and invest in gold in anticipation of the 2026-2027 peak will have to wait until then to see if it will pan out.
That being said, Ayales’ observations should not be dismissed out of hand as his observation is based on past gold rushes. As such, gold prices should be monitored closely in order to make an informed decision on the best time to invest. And so, while there is no guarantee that Ayales’ prediction will come true, it is certainly worth bearing in mind if you are looking to make investments in gold.