Friday, September 11, 2009

Milestone in the gold bull market

Today was the first ever weekly close over $1000/oz. on the Comex.  The gold bull market to date has been very quiet and powerful over the past 8 years.  Nominally, gold is up 400% from bottom to now ($250 to $1000).  It's averaged 16% per year annually.   And it has done all of this without the benefit of inflation.

This chart from pretty much says it all (commentary is mine):

(click to enlarge)

The big institutional money is just now discovering the precious metals sector.  Anyone who does not climb aboard this train now may be waiting for a pullback to enter that doesn't occur until gold and the mining stocks are at a much higher level.


  1. Dave,
    I think people have no idea what it would mean for gold if even 5% of all investors made gold just 1% of their portfolio. I do not think most have any idea how small the gold holding community is.

  2. gyc: yup. but forget the hoi polloi. Imagine what would happen if pension funds shifted just 2% of their money in the sector.

    Select junior mining stocks in this sector are so rediculously cheap right now. If I get motivated I'm going to post an analysis of one in particular this weekend.