October 2, 2022

Gold Bull Market Could Last Another 20 Years With $12,000 Price Target

Bull markets are born from underlying macro economic trends that take decades to fully play out.  The bull market in gold has lasted barely ten years, yet analyst after analyst from the conventional press argue vehemently that gold is in bubble territory and dangerously overpriced.

The voices proclaiming a “gold bubble” do not understand why gold has appreciated for ten years, have never owned gold and have kept their clients out of the best performing asset class of the past decade.

The goldandsilverblog.com has previously argued that given the current fiscal, political and monetary circumstances, there is currently no upside limit for the price of gold.  Those exiting the gold market now will be missing the most explosive and profitable part of the gold bull market.

If the gold bull market duplicates other major bull markets, investors in gold can look forward to decades of continued price appreciation.  Consider the duration and price appreciation of the following asset classes.

United States Housing Bubble

The bull market in housing prices began in the early 1970’s.  The nominal price of a house rose from $25,000 in 1972 to $250,000 in 2006 for a 1,000% gain over 34 years.

 

Courtesy jparsons.net

NASDAQ Stock Bubble

The NASDAQ rose virtually uninterrupted for 26 years from 55 in 1974 to 4,570 in 2000 for a gain of 8,300%.

Courtesy yahoo.com

 

30 Year U.S. Treasury Bubble

The price of the U.S. 30 year treasury bond has risen continuously since the mid 1980’s and yields have reached 60 year lows.

 

Courtesy yahoo.com

U.S. Debt Bubble

We consider last, the greatest bubble in all of recorded financial history which is the bubble in U.S. debt.  U.S. debt has increased by almost 3,000% since the early 1970’s.  The increase in borrowings by the United States has gone absolutely parabolic and is unsustainable.  The duration of the U.S. debt bubble cannot be predicted, but when this bubble bursts, the repercussions will be devastating to the global economy.  Astute readers will notice that the genesis of the housing, NASDAQ and U.S. debt bubbles coincide perfectly with the end of the gold standard.

The bubbles cited above lasted an average of 31 years.  The average percentage gain for housing, the NASDAQ and U.S. debt bubbles is 4,100%.   Extrapolating from past historical bubbles, the gold bull market should last another 20 plus years with a price target of over $12,000.

Comments

  1. We at Higher Gold Prices.com think that the dramatic rise in gold and silver prices are a reflection in the diminishing value of currencies and an accounting of excessive money and credit creation since 1980. This is a monetary phenomenon and is now entering the third and last phase where it becomes a bubble but that is the stage where the biggest price gains will occur.

    In fact we think gold will be $5000 and silver $150 by the end of 2015. We invest 100% in gold and silver exchange traded funds and mining stocks. We feel so strongly we also started a newsletter update service devoted to the subject.

    For a 30 free trial of our service go to: http://www.highergoldprices.com/.

  2. First, your contact area on the “about us” page isn’t functioning. On the other hand I wanted to point out that I’ve read several bullish articles in the past few hours and want to share with readers and I think the author would like to pass this on too: http://www.facebook.com/goldripoffs

    Spreading the word about gold scams, especially to the huge amount of new,young buyers. Feel free to share and help people see the red flags from dealers before they are scammed.

  3. I am very impressed with your site: very nicely done.
    John

Leave a Reply to John Cooper Cancel reply

*