What do you call a 12-year trend that has appreciated each and every year?
Its a bull market but apparently not if its Gold (NYSE:GLD). In that case, its the “gold trade” or the “gold rally.”
Reporters and journalists refer to the bull market in Gold as a rally. A rally indicates a revival or renewal of some sort. It implies weakness was in the rear-view mirror. Gold’s run could be termed a rally until 2005. A year later, Gold was closing in on the 1980 high and the bull market was obvious. Now we are 11-12 years into this bull market, Gold is almost twice its previous all-time high, yet this is still a rally? The rally is over. The bull market is on now!
The same goes for the “gold trade.” I’m sick and tired of hearing this nonsense as if Gold’s run is some aberration or something random with nothing behind it. First of all, I want to show (in my opinion) what a bull market, bear market and trade look like. Take a look at the chart.
Twelve years running and nary a mainstream concession that Gold is in a bull market. It is remarkable that we are past the halfway point in this bull market and so few have caught on.
Perhaps the bursting of recent bubbles has falsely conditioned investors to believe that trends cannot be sustained or that trends will automatically collapse. The reality of Gold (NYSE:GLD) is actually counter-intuitive. The bubble is not in Gold but in our monetary system and fiat currency. The bull market in Gold and Silver (NYSE:SLV) are the correction to the bubble that is our monetary system. The masses need to admit there is a bull market before they can understand what is really happening.
The bull market will get more validation as Wall Street begins to participate. Keep your eyes on Wall Street. The bull market will become mainstream when Wall Street begins to finance Gold and Silver companies, take them public and advertise Precious Metals as a way to attract more business. We aren’t yet close to that.
For now, the financial media will continue to mis-characterize what will become the greatest bull market in generations. They, like todays investment professionals are stuck in the short-term and cannot even see the obvious. They are too busy trying to make 2% on a day trade that they have completely missed an obvious bull market.
The fundamental drivers are so obvious. Maybe that is why Gold has gone up every year for what now will be the 11th year. Yet, the recent past will be nothing compared to the accelerating bull market and bubble and mania to follow. If you’d like to learn more about how to participate in this bull market, then consider a free 14-day trial to our professional service.
Jordan Roy-Byrne, CMT
Another great read: Gold & Silver Premium Vastly Outperforms with 86.5% Return in 2010>>