History Shows A Gold Bull Market Is Fast Approaching


Yearning for sunnier skies for your gold investments? How’s this sound…

  • Gold in a decisive bull market, with the price steadily rising
  • Silver soaring and outpacing gold’s gains
  • Gold stocks rocking, erasing underwater positions and racking up the profits
  • That’s not pie in the sky wishful thinking—it accurately describes the next stage of the gold market, something that will soon visit your portfolio.

    With the price of gold currently stuck in place, like a stain on the front of your best shirt, and the stocks only teasing us like Lucy holding the football for Charlie Brown, how can I be so sure?

    Because that’s exactly what happened after every other bear market. For example…

  • 1976. Bear market ends, and gold begins a 701% run in less than four years.
  • 1985. Bear cycle ends, bull cycle begins. Gold gains 71.8% over the next three years.
  • 2001. Monster gold bull cycle delivers a 630% advance over the following 10 years.
  • As I pointed out last month, markets cycle. The current range-bound price for precious metals won’t last forever, for the simple reason that they never have, especially in the resource market.

    If you set your sights on the big picture, you’ll see that in spite of today’s negative emotions, gold’s future prospects will render them a distant memory.

    Consider some of the likely changes on the horizon and how they will transform the gold market from flat and listless to exciting and profitable…

  • Stock market reversal. The performance of the broader equity markets is probably the biggest reason gold hasn’t attracted the mainstream. But stock markets cycle, too, and a correction is due, perhaps overdue—the S&P is up six straight years and nine consecutive quarters. Margin debt is higher now than it was preceding the 2008 crisis, and corporate profits saw the biggest drop in four years last quarter. Gold will be the benefactor in the reversal, especially since it’s already corrected.
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