R.I.P. Gold Bull?
By Doug Hornig
Paydirt book editor Doug Hornig outlines the 4 key factors that signal why this bull market ain’t over. -Jeff Clark
You may have seen this July 7 headline from Bloomberg, or another like it: Gold’s Bull Market Has Ended and Now All Eyes Are on Bears.
If you hold gold, do you have the jitters? After all, gold fell $610 in March, the absolute largest decline ever for gold in a single month, and a gut-wrencher. As I write on July 30, the gold price is off by some 26% since its peak price in January, and down about 23% since February 28. Keep that date in mind for later.
The question is whether the big, bad bear will continue swatting gold ever further down, or whether we are just enduring a needed but painful correction that proves as relatively short-term as it was steep.
What’s frustrating is that gold doesn’t seem to be doing what, according to historical precedent, it should be doing. In some ways, it’s been completely irrational.
So let’s look at four key factors:
- Demand
- Money supply
- Mining
- And war.
Demand Destruction—Not
Gold’s falling price suggests that it has experienced
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