Profile image
By The Daily Gold (Reporter)
Contributor profile | More stories
Story Views
Now:
Last Hour:
Last 24 Hours:
Total:

Gold not in Real Bull Market Yet

% of readers think this story is Fact. Add your two cents.



Is Gold now back in a bull market? Most gold bugs think so and are quick to proclaim that.

But, could Gold remain in a secular bear market? It hasn’t made a new all time high in 8 years and the perma-bull, financial asset loving crowd certainly believes so.

This is semantics because what really matters is making money and nothing else. 

With that said, Gold is not in a real bull market yet. We can still make money but the point is, when Gold enters a real bull market we will make a lot of money and quite easily.

Simply put, other than from 1985-1987, Gold has never been in a real bull market without outperforming the S&P 500. 

Take a look at the chart below which plots Gold (black) and Gold against the S&P 500 (blue).


Gold (black) & Gold vs. S&P 500 (blue)

Gold has performed well in nominal terms since 2016 despite underperforming the stock market and that is because its exceptional strength against foreign currencies.

Some Gold-hating, financial-asset loving perma-bulls have compared the recent move in Gold to the one in the mid 1990s. They didn’t do the proper research and analysis because this time around Gold made a new all-time high against foreign currencies (FC). 

That is an extremely strong positive divergence whereas in the mid 1990s (and mid 1980s) Gold/FC showed a negative divergence. 


Gold & Gold/Foreign Currencies

In both intermarket and relative terms, the key relationship for Gold moving forward is Gold against the US stock market. The ratio is trying to carve out a long-term bottom. 


Gold vs. S&P 500

If the ratio can break current resistance and trend towards 0.60, then it will not only mark a multi-year high but will confirm a long-term bottom. Such a move would coincide with further positive fundamental developments for Gold and put the metal on a path to at least retesting its old all-time high at $1900/oz. 

A multi-year advance in the ratio confirms a “real” bull market in Gold and we would likely see Gold advancing past $2000/oz. 

There is a scenario in which Gold and gold stocks perform well even if Gold is not outperforming the stock market. We’ve experienced that this year as well as in 2016. 

However, the larger point is Gold has to outperform the US stock market before it can enjoy a multi-year bull market and a new all time high.

In the meantime, precious metals have corrected as expected but are experiencing an oversold bounce. The correction has created new values and new opportunities in some companies. To learn the stocks we own and intend to buy that have 3x to 5x potential, consider learning more about our premium service.   



Source: https://thedailygold.com/gold-not-in-real-bull-market-yet/

Support BeforeitsNews by trying our natural health products! Join our affiliate program
Order by Phone at 888-809-8385 or online at www.mitocopper.com


Get our Free Ebook, "Suppressed Health Secrets"  with  Natural Cures THEY don't want you to know!

APeX - Far superior to colloidal silver!  Destroys Viruses, Bacteria, Pathogens with Oxygen plus Silver!Supreme Fulvic - Nature's most important supplement! Vivid Dreams again!
Ultimate Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen!  
Organic Hemp Extract (CBD) - Full Spectrum high CBD (3300mg) hemp extract eases stiff joints, relieves stress and more!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.

Smart Meter Cover -  Reduces Smart Meter radiation by 96%!  (See Video)


FINAL WARNING!   Diseases are EXPLODING!  Watch this Video about APeX and You'll THROW AWAY Your Colloidal Silver!   APeX destroys Viruses, Bacteria and other Pathogens with the power of Oxygen PLUS Silver!  Nobody else has a product like THIS!   See why the inventor hasn't been sick in 16 years and why you'll never hear about it on the FAKE NEWS!  Get some now and tell your friends about it too so we can reach more people!  

APeX Interview - Superior to Colloidal Silver from Lee Canady on Vimeo.

Learn about APeX Here and Get the 50 Page Report in PDF format.   Call us at 888-809-8385 to order by phone.

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

SignUp

Login

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.