Loading ...Suppose someone approached you in the year 2000, when the price of gold was around $250 an ounce and suggested that it would be worth almost eight times its current value within the next decade. I am sure most people would have thought that person to be less than credible making such an outrageous market call. Think about it. An asset being expected to multiply by eightfold within a decade? But as we all know now, gold went from $250 an ounce to just over $1,900 an ounce in just that amount of time.
What if I was to tell you that gold could make another such run over the next decade plus? Does it seem that outrageous now? Well, I think the math shows it can and will, with the price of gold futures surpassing $25,000, and more specifically for this column, the price on the Gold Bug Index HUI, -1.94% eclipsing 15,000. But let’s take a look back before we go forward.
It’s the middle of 2011. Gold was rising parabolically — some days even advancing by $50 per day — and heading over $1,900. Breaking the $2000 mark to most was a sure thing.
Think if someone walked up to you then and stated that the price of gold would be cut in half within four years. It would be an outrageous market call. In many ways, it would be no different than the person suggesting that gold would go from $250-$1900 within a little over a decade.
http://www.marketwatch.com/story/the-next-great-bull-market-gold-25000-2015-06-04