Gold Investment: Will History Repeat Itself In The Current Bull Market?

Gold Investment - 11 June 2011

Jeff Clark, the editor at Casey Research's Big Gold newsletter, said that the gold price has been rising steadily since July 2010. It fell by 4% last month, which was the biggest decline, except for the 6.2% drop in January.

Invest in precious metals today! Contact us for details.

Invest in precious metals today! Contact us for details.

However, these declines are barely noticed as "corrections" in the bull market, which began in 2001. Since then there have been 18 such corrections. Declines are met by more buying, which pushes the price higher. As a result, the gold price is constantly on the increase.

The factors that cause the gold price to increase, include bad news economically and more money printing. Yet, investors want to know whether that means that there will be no more big corrections and history could provide some clues.

Investors feel that if a time could be found where major falls were sidestepped, it would be reasonable to think that a period of steady climbing has been entered. However, if bigger corrections were seen during a mania, we might see them even during the most bullish of markets.

Invest in precious metals today! Contact us for details.

Invest in precious metals today! Contact us for details.

During the 1970s mania, which was one of the biggest parabolic gold runs in history, there were seven major corrections. This results in one average correction of 10.1%, every three to four months. These declines were sharp and lasted fewer than 10 business days. All the declines lasted less than one month, around the middle of the mania.

<< Previous    [1]  2  3    Next >>