Gold’s Time to Shine Is Now: Why Investors Have Big Opportunities in Gold over The Next Decade
The comments below are an edited and abridged synopsis of an article by Dohmen Capital
Investor interest in gold has dropped since the peak in 2011, when gold was around $1,930. The low of that correction into 2015 was around $1,045.
Dohmen believes that, for over 40 years, gold has been manipulated by the big bullion banks. Therefore, fundamentals will not always determine the price.
With long-term bullish sentiment on precious metals low until late 2018, and gold in many currencies already at or near record highs, it’s only a matter of time before gold in US dollars shoots upward. Although the short term may see more of a pullback, the long-term factors are constructive.
Dohmen forecasted a 20-year bear market in gold in 1981, which at the time was greeted with disbelief. That bear market lasted until 2001, exactly 20 years.
But the second part of their forecast in 1981 said that, according to their very long-term cycle study, a bear market would be followed by a 30-year rise in gold. They didn’t know what would cause it, but the cycles said it should happen.
If that remarkable forecast holds true, gold could have a continued secular bull market until 2030. That means the gold bull market could have about 11 more years to go and, historically, the final phase of a bull market is the most spectacular.
If the markets run into resistance at their old highs, will investors be prepared? Are portfolios protected and diversified enough to protect from devastating losses? Perhaps investors should take a closer look at gold.