Why You Need Exposure to Gold
Do you have exposure to gold?
Early last month, the precious metal broke to new all-time highs, rising above $2,000 for the first time in history. What’s truly striking, however, is that even after such a massive move, gold’s subsequent correction was relatively shallow. Indeed, it looks increasingly as if it has put in a base and is ready for its next leg higher.
If history is any guide, we’re just getting started here.
During the gold bull market in the 1970s, gold rose 585% during its first leg up from 1970 to 1975. It then corrected roughly 50% before beginning its next leg up. However, it was the SECOND move higher that was the BIG one. The price went up by a whopping 740%.
This time around, we’re following a similar pattern. Gold first rallied about 630% from 2003-2011. It then corrected about 43% before bottoming in 2015 at $1,060. If it follows a similar second leg up this time around, it’s going to approximately $8,000 per ounce before it peaks.
Literal fortunes will be made by this bull market. And if you don’t have exposure to it, you need to start doing so.
Editor, Money & Crisis