The current gold bull market is still young. Historically, gold bull markets can last a generation.
Based on the historic dislocations in today’s global economy, this gold bull market should be well above the historical average in its depth and duration.
Gold and Gold mining shares will continue to increase in value and price. A major factor in this forecast is that not one in ten U.S. investors currently owns a Gold stock. That means opportunity. It is a young bull market.
Sophisticated investors want to be like those who got in early in the Internet run-up, then had the sense to get out when taxi drivers started giving them tips on dot.com start-ups that had no product or service to sell. This Gold bull market should make the Internet boom look like child’s play. After all, people could create dot.coms with an accountant. But you cannot create Gold.
As anxiety grows about the dollar, rising debt levels, terrorism, threats to trade and oil, brokerage houses and investment groups will be taking positions in Gold and Gold mining shares. Later, the public will start to buy Gold and Gold mining shares in reaction, as well. Once the Gold rush is underway, most investors will wait and not participate until the end of the trend.
In investing, timing is everything. Now is the time to invest in Gold because Gold and Gold mining shares are still under-valued, under-appreciated, and under-owned.
This is an historic opportunity to invest in junior and exploration mining companies, LEAPS, and Warrants. Early in this stage of the Gold bull market, exploration and junior companies will be booming, and IPO’s for new discoveries will be highly sought after, as they were during the Internet boom.
So, this is still a healthy Gold bull market, marked by volatility. That is the best time to invest.