How a Gold Bull Market Works
Every major gold bull market in modern history has consisted of three main stages:
1. Currency Devaluation Stage
2. Investment Demand Stage
3. Mania Stage
During these three stages, gold prices typically rise in a parabolic upswing, which ultimately results in a sharp, skyrocketing price spike. (Take a look at the 1970s gold bull market chart above, as an example of this phenomenon.)
So far in today's gold bull market, we've seen evidence of the first two stages:
During the first stage of a gold bull market, prices increase because of currency devaluation.
So far in this bull market, a dramatic drop in the value of the US dollar against other world currencies has lifted gold prices over the past 7 years - breaking the $1,000 per ounce mark. In fact, this devaluation is evident in the 42% drop of the U.S. Dollar Index between the summer of 2001 and spring 2008.
And now, thanks to the massive banking bailout that we can't REALLY pay for, we're about to add some TNT to an already highly-explosive situation.
In the second stage, gold prices continue to grow due to increased investment demand. Attracted by the modest gains of the first stage of the gold bull market, investors begin to buy gold as an investment, which further snowballs the price of gold higher.
And with today's screaming demand for physical gold, the introduction of gold ETFs - and similar products - investment demand has had incredible strength since the beginning of this gold bull market, growing in terms of both tonnage and dollar demand.
Again, the first and second stages of a gold bull market generally return considerable gains. In fact, gold prices in this bull market have increased as much as 306%.
Of course, with the investment tool that I'm about to show you, that modest 306% return could have stuffed your pockets with more than 600% gains!
Don't worry if you missed it. Truth be told, it's the third and final stage of a gold bull market that can turn everyday investors into instant millionaires.
Greg McCoach knows a thing or two about gold.
His knowledge of the precious metals markets frequently lands him on tv, radio, web sites and blogs, commenting on gold's increasingly pivotal place in the financial world.
In January of 2000, Greg set out to create the most profitable gold mining investment advisory service the globe's ever seen - The Mining Speculator.
Since that time, Greg's uncovered some of the most undervalued stocks on the planet, consistently grabbing the biggest piece just before tremendous gains occur.
He scours the earth for these investment opportunities... as protection against the financial uncertainties currently engulfing the U.S. and world markets.
Greg--years ago, in fact--correctly called today's economic crunch. All you have to do is look at his archives as editor of Mining Speculator and Gold World. You'll be in awe... of his predictions and analysis, as well as his investment track record.
As the saying goes, "Periods of great crisis also offer great opportunity."
Right now - without question - the best opportunities for investors to protect themselves against the financial reckoning are with precious metals and mining stocks.
Those opportunities can only be found in The Mining Speculator.
We Protect Your Privacy