The number of really good quality and original writers would be under ten or so. Each correction followed very strong advances. Roy-Byrne is on Twitter: TheDailyGold Mr. . In early 2012, the World Gold Council reported central banks, after decades of heavy selling, also became strong net buyers of the metal -- a significant turn of events. As such, the argument goes, it cannot and should not be analyzed along the lines of a stock or the stock market as a whole. Like me, Jordan believes gold has been in a bear market for the last four years but is going to resume the bull soon.
The 2001 and 2002 periods are the best comparison to today. While it may take another week for the sector to find a short-term low, the outlook over the next several weeks appears positive. The fact that this has taken on the appearance of secular bull market is a secondary consideration. It is a also a savings instrument and a form of wealth insurance. The accumulation stage starts the up trend and usually comes at the end of a down trend, when the psychology is overly negative. That degree of downside is inline with the correction analog chart. The point in all of this is not that stocks and bonds should be banished from the contemporary portfolio, but instead something a bit more subtle -- that gold is quietly restaking its claim to primacy and should not be ignored in the modern era.
In other words, each correction served investors two buying opportunities and three in the case of 2002. Naturally the last four years has hurt everyone talking about gold shares but Jordan Roy-Byrne is going to make a lot of money for his readers in the coming gold boom. At present, according to a study by Sprott Asset Management, gold comprises just. I cannot guarantee the accuracy of any information provided. Central banks and hedge funds accumulating physical gold, for example, often point to global economic uncertainties and the unreliability of national currencies as their incentive.
The three stages of a secular bull market Returning to Investopedia, we find that, according to Dow Theory, secular bull markets move through three stages -- accumulation, public participation and excess mania. While we are likely at a short-term buying opportunity now, probability tells us that another one is coming in the next several months. According to Investopedia, the public participation stage is characterized by good news and strong supporting data, and is the longest lasting of three phases. When one considers what might propel gold to the ultimate mania phase of its secular bull market, central bank and institutional fund demand come up as the primary candidates and for good reason. Only time will tell how long the correction lasts but my view is it is more likely to last around six months than the 10 months seen in 2002. I think it will encourage you to subscribe to his excellent service.
Gold Stocks Correction Analog The other important point to mention is every correction formed a typical A-B-C or down-up-down pattern. One of the people I have followed for years and been on a couple of mining tours with is Jordan Roy-Byrne. I encourage anyone interested in gold investments to and read the book. Since gold is essentially a kind of money by which investor-citizens hope to counter negative economic trends, many owners are likely to retain ownership as a lifetime estate hedge, particularly if the conditions that necessitated the hedge remain unresolved. A third, a third and a third. In order for family wealth to persist through so many centuries and through such adversity, something more is needed than ordinary investment skill.
A secular bull market will have bear market periods within it, but it will not reverse the overlying trend of upward asset values. My videos, presentations, and writing are only for entertainment purposes, and are not intended as investment advice. To gauge a potential path forward we present a new analog chart and compare the current correction to those from past markets. Secular markets are typically driven by large-scale national and worldwide events, which occur in combination. That would suggest that they will retain their gold holdings as long as these problems remain a threat.
Since 2006, investment demand has risen steadily with annoucements throughout the period of new hedge fund and institutional interest as well as very strong private investor demand in the form of coins and bullion. True believers capitalized on the negative sentiment by buy gold at what turned out to be bargain prices. In a secular bull market, strong investor sentiment drives prices higher, as there are more net buyers than sellers. The very least we expect of our readers is that they think for themselves. Roy-Byrne on his website: TheDailyGold. The information in this newsletter is not intended to create, and receipt of it does not constitute a lawyer-client relationship, accountant-client relationship, or any other type of relation-ship. Jordan has written a free book titled.
Roy-Byrne is on YouTube: Want more help from David Moadel? The Author disclaims all warranties and any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein. We post the very best writers we can find no matter if I agree with them or not. If you would like to broaden your view of gold market, we invite you to It's free of charge. Gold is not simply an investment vehicle. The public participation phase began in 2006 and it is the stage in which gold finds itself today. You will want to download it and read it if you have any interest in gold or gold stocks.