2011-03-22

When Gold Stops Going Up

As the rest of the world deals with skyrocketing energy, food, and clothing prices, there is still a handful of in-the-know investors becoming filthy rich.

What you need to understand as an investor is the long-term cycle of markets.

Gold will continue to go up until three things change:

- Inflation is recognized. (It will be an issue in the 2012 presidential elections.)
- Helicopter Bernanke is replaced at the Fed with an inflation hawk.
- U.S. get a new president.

Until then, the best returns are ahead for gold.


As you can see by the gold chart above, the trend line keeps getting steeper... but it has yet to go parabolic.


And as you can see from the CSCO chart, the last years of a bull market see the fastest gains.

http://www.wealthwire.com/news/metals/913