The commodities market became bullish in 1999. Based on historical precedent (happened in cycles of fifteen to twenty-three years), the commodity bull may run until sometime between 2014 and 2022, although there will be some setbacks along the way. In the 1970s gold at one point went up 600 percent before beginning to react. It consolidated and declined 50 percent over a two-year period, causing many to give up. It then turned around and rose 850 percent. That is how markets work.
- Jim Rogers (Author of book: A gift to my children)
Gold and silver is currently consolidating and declining. Have you given up or are you still holding?
To be honest I have had just about enough.
ReplyDeleteFor close to 2 years Gold and Silver have been the worst possible investment.
If anyone out there sees any light at the end of this very dark tunnel I would sure like to hear from them.
And NO...I don't want to hear any wild eyed stories about conspicy, manipulation, secret societies blah blah blah.
Everyone says hang on...how long do you sit still watching your investments lose money?
They say the DOW is due for a correction....really? show me evidence that shows this! It sure is not showing even a hint of correcting.
I defy anyone to show me a shred of evidence that Gold is a good investment compared to general equities.
Hi Dean,
DeleteWe have to put those past two years into context. Gold as an example has been up and closed each year in the positive for the past 12 years straight. As Jim Rogers says, historically this is very abnormal in the markets and was overdue for a correction.
Lets look at some data (closing annual historical gold prices)
2012: $1,664.00; 8.68%
2011: $1,531.00; 7.80%
2010: $1,420.25; 30.60%
2009: $1,087.50; 25.04%
2008: $869.75; 3.97%
2007: $836.50; 31.59%
2006: $635.70; 23.92%
2005: $513.00; 17.77%
2004: $435.60; 4.40%
2003: $417.25; 21.74%
2002: $342.75; 23.96%
2001: $276.50; 1.41%
So for the past decade, gold has been an excellent investment compared to general equities. But I can see that people who bought when gold was 1900, 1800, 1700 etc are feeling depressed right now. Just unlucky timing. After the consolidation/correction ends, gold will most likely turn around and continue to rise just like how it did in the 1970s bull market.
Wish you happiness and successful investing.