The long-term bull market in gold is now 11 years old – and, in spite of recent market stagnation, the latest phase of the rally appears to have just started.
My advice is simple: Prepare yourself. It still has a long way to go.
In the wake of very disappointing news on the U.S. labor market, the gold price today soared above $1,600 an ounce.
The long term bull-run in this yellow precious metal has been slow and steady. After Gordon Brown finished selling 60% of the U.K.’s gold reserves in 2002 at an average price of $275 an ounce, the market has never looked back.
Yet, until this morning, the price of gold has been basically unchanged since last year. Gold closed out 2011 at $1,566.80 an ounce. But at last glace today, thanks to the fact that the U.S. economy added only 69,000 jobs in May, far fewer than expected, the yellow metal had surged almost $60 to $1,621.77.
The gold price may even make another dip – but it will not remain at these levels for long.