Since around September 2011 we saw the Bear market in Gold Begin, although it took five years to finally hit a bottom in January 2016 it was a long way down.
Gold bears have enjoyed the long ride down but are now starting to realize that Gold is back and in a big way. Everyone knows that Gold is widely used as a hedge against falling markets and today we are seeing evidence of that. With the recent Brexit as they are calling it Britain leaving the EU markets around the world have been shocked by this news and investors and the public alike are selling off and taking whatever profits can be found in the markets of fear of a global recession is upon us.
When this happens Gold usually performs very well. From the Start of 2016, we have already seen a rise in the Price of Gold of approximately $300 an ounce or 28%. The last Gold Bull run that started was in 2001 and ended for a brief period in 2008 when the price of Gold ran from $300 an ounce to $900 an ounce. Then the markets crashed in 2008 and Gold fell slightly but then took off on another unprecedented Bull Run from $900 to just over $1900 US.
If you take into consideration that the price of Gold only fell off shortly after the crash of 2008, the last Gold Market in theory really last from 2001 – 20011. That is a staggering 10 year Bull market! Now after a fall from grace, we have seen the price of gold take a hit from 2011 $1900 to just over $1000 at the beginning of 2016. Today as of June 29th, 2016 we are sitting at a price of gold of $1318.
If we assume that this is the beginning of a new Gold Bull Market I think it is safe to say that we will not only see the 2011 highs of $1900 an ounce but much more. From 2001 – 2001 the price of Gold rose from $300 -$1900 an ounce. That is 600%! It took ten years but considering an above average yield over ten years is about 100% what we saw in Gold was nothing short of a true Bull.
If you look at the world economy today and the state of the markets around the world. If we are truly entering a new gold bull Market it is safe to say that we will not only see the 600% rise but possibly even more. Maybe in the next 5 years, we could see $5000 even $10,000 Gold. Are you going to be a part of this incredible history?
Remember, Investing in Gold has risks so do your own due diligence when investing and only invest money whether it be in stocks or physical Gold that you can stomach the volatility that comes with investing in Gold.
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