Expert: David Burton, CEO & Founder of School of Gann
Start: February 14, 2006 - 07:30GMT
End: approx. 08:30GMT
Topics that will be covered for above session are:
- The long term cycles in Gold
- Gold in a bull market?
- The British Pound
- Debt clock
Who is David Burton?
DAVID BURTON has been studying and trading the methods of the most famous trader of all time, W.D.Gann.Gann was a financial astrology up until his death in 1955. David has been studying astrology since 1980, not modern day astrology, the astrology of the ancients. David uses both helio-centric and geo-centric in his studies. In June 2002 on Gann’s birthday David ran the first four day workshop teaching the methods of Gann. Only running a few workshops a year to a limited number, he discovered that the basis, chart reading, money management,seasonal patterns etc were not under stood even by people that have been trading for a number of years,this lead to the home study course for the beginner completed in march 2005. To understand the methods of Gann you have to have a strong foundation otherwise you will never keep your money. David hasjust set up a new website THE SCHOOL OF GANN to keep Gann’s methods alive, hoping that people will study Gann and enjoy the journey and success David has had with Gann. David publicly forecasted in advance the 130 high in cotton in 1995, the 737 high in wheat in 1996, the major low in cotton in 2001as well as many others which are on his website www.schoolofgann.com
The Golden Methods of W.D.Gann
The method of W.D.Gann is always to study history to forecast the future outcome. “The future is just a repetition of the past” W.D.Gann. Gann is the only person that when so far back in history to study cycles on different markets. People’s life structure is not even close to Gann’s to put in the amount of study he did. He had commitment and passion to study cycles. This is what you need to success in anything in life.
The long term cycles in Gold
The Bank of England was incorporated on 27th July 1694 and began to exert a steadying influence on the price of gold for the next 234 years.
The Gold standard was first established in 1717, but didn’t become official until the Peels Act of 1819.
The highest price Gold hit was $19,390-00 on 31st May 1781 when the continental currencies collapsed. This is where the saying comes from “I don’t give a continental”.
Other high prices were on 1st July, 1864 at $59-12, 24th September 1869 at $33-49.
The US abandoned the gold standard on 15th August, 1971 and Gold rose for 9 years to $850-00 an ounce on 21st January, 1980.
Gold fell to an extreme low on 15th July, 1999 of $253-30 and a slightly higher low on 2nd April, 2001 at $255-90 an ounce.
We will now look at some of these dates astrologically to have a road map for the future, which is what Gann would have done.
The Bank of England has a sun conjunct Jupiter in Leo. Leo represents the Sun and Gold. Mercury is in the Leo trine Saturn. Primary interest would have been trading in Gold. Pluto is in Leo, Pluto, is anything underground, again looking at Gold as prime interest of the bank. Based on this chart we have Saturn (restrictions) conjunct Jupiter (Expansions) Sun (Gold) in February and March 2006.
This is likely to keep a lid on Gold after a period gold is likely to keep going higher until 2009 when Uranus conjuncts Neptune in this chart. This fits in with the $U.S getting weaker. Also fits in with the story on u.s debt and bonds in the last issue of “Your trading edge”
Major structure changes to this Bank in 2022 and 2024 when Neptune returns to its own place and Pluto is opposite its place of birth. This fits in with the end of the depression which should be more than a decade long. Companies and people always go broke at a bottom. Again Australia will have no debt by June 2006 and this would be the safest place to have your cash.
Gold in a bull market?
Gann said “Your monthly chart is your trend indicator”, its has been making higher tops and higher bottoms since the low in August 1999. (Bullish). Since the second higher bottom it has only corrected two months on the way up. Therefore unless it corrects more than two months the trend is still up.
Gann divided the market into eights and thirds. Eights are very important both time and price. Why? because all the eights of a circle reduce to the number nine. Nine being the highest digit. This is why Gann used the square of nine, the old Hindu tea calculator. If you add all the numbers from 1 to 9 they equal 45, Gann’s death number. Getting back to gold, it needs to break the 50% level at $475.00 Per/once to be really bullish. 50% equals 180 degrees and 1+8+0 = 9.
The 2 x 1 Gann angle crosses around the $475 level as well giving a doubly strong level to get through. Once above the level it could go anywhere $1600 or higher?
The all time high in Gold 31st May 1781
In this chart Jupiter is in Scorpio, Scorpio being death, debt and taxes, which occurs at the same place again in October 2006 this happens ever twelve years so it’s only a small cycle, transiting Pluto squares Neptune in 2009 indicating higher prices, this happens approx every 130 years.
The most recent high made on 21st January 1980 at $850
Saturn will return to its same position in 2009 and Uranus in 2022, both look at high price years for Gold.
Should you buy currencies or Gold? Over the last 10 years central banks have been selling all their Gold. The main reason would be that there’s a holding cost to physical gold (storage and insurance) , where if you had currencies other than the $US you have been receiving interest providing the interest rates have been higher than the US interest rates, which in most currencies they have.
Also the currencies have appreciated against the US since 2001.
People in the US who switched their money to the pound, New Zealand and Australian Dollars made a fortune. I heard Bill Gates was buying property in New Zealand when the $N.Z was below 40 cents, it now over 70 cents and property has doubled and tripled. This is exactly the sort of thing Gann would be doing if he was alive today. Those who bought property in these countries and sold at the top of the property boom (Saturn in Cancer) a few years ago even made more money.
The British Pound
The pound top in 1864 at 12-97 pounds and fell to an all time low of 1-034 pounds in 1985, a hundred and 121 year bear market (Gann’s 1/3 of circle). See chart 4 Yearly British Pound 1864 – 2005.
The Pound has turned Bullish breaking the 2 x 1 Gann angle coming down from the high of 7-00 pounds in 1914, this broke this angle to the topside giving a buy in 2002 at 1-50 pounds.
The 4 x 1 Gann angle from the same high, and 2 x 1 Gann angle from 1864 high cross a 4-50 in 2009/2010. The 1 x 1 Gann angle from the 1985 low also hits that area.
If someone was wanting to buy gold you would get more leverage by buying futures than buying physical gold. With currencies you now can trade spot currencies, something you could do ten years ago.
You now have a very small insight to why Gann went so far back in history. This is the correct way to look at Gann, not what everyone else is teaching.