Welcome to Stage Two of Gold's Bull Market

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". . .there is a notable difference in this stage compared to stage one."

Bull markets are marked by three distinct stages, and when gold climbed above $1,000, it only entered its second stage. In other words, gold has much further to climb in the months and years ahead.

So don't be misled by what you may hear or read in the mainstream media and even much of the alternative media. After all, how many commentators have correctly identified gold's bull market, now a decade old?

An old and trusty adage says that bull markets climb a 'wall of worry.' In gold's first stage, there seemingly was a lot to worry about. But most of these worries were emotional, not logical. Few paid attention to relative value, which is the proper determining factor when making decisions about your portfolio.

Gold is now in its second stage, and of course, the worries don't disappear. But there is a notable difference in this stage compared to stage one. Look how many people are writing and talking about gold. Gold has moved from apathy and neglect—stage one characteristics—to growing attention. But importantly, instead of embracing gold and analyzing it to determine relative value, today's attention is one of widespread disbelief and skepticism that gold can climb higher. These are exactly the responses one should expect at stage two.

As gold climbs higher, we will eventually enter stage three. The timing of its arrival cannot be predicted, but we will know it has arrived when commentators who have been consistently wrong about gold will be telling everyone willing to listen to buy gold. But at some point in stage three when gold no longer is relatively good value, it is when I will be advising to reduce your gold holding by spending or investing it.

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