Gold is now back above $650/oz at the time of writing. At that level, the price has recovered more than 50% of the sharp losses from earlier this year. There is no doubt in our minds that we are witnessing a major investment phenomenon. This bull market in gold might yet even eclipse the extra-ordinary gold bull market that ended in January 1980 when gold was priced at nearly $900/oz.
In real terms, for today's gold to match that price it would have to be over $2000/oz. However, at this point in time, we simply expect gold to reach our next target of $1000/oz. As a consequence, gold-related investments will be star performers.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Above all else, we consider that gold will be the beneficiary of those policies and in spite of some volatility, a safe long-term investment - at least until the taxi driver who drives you to an appointment tells you about his gold investments, the waitress and waiters in the restaurants you eat in tell you about their gold investments, and your hairdresser, who has to find something to talk about, tells you about his/her gold investments. At that point, we would certainly say it is the time to sell. No-one knows what price gold will be at that time, except to say that if this bull market behaves like all other bull markets known to man, it will be much higher than anyone expects it to be.
By John Robson & Andrew Selsby at RH Asset Management Limited, as published in the Onassis Newsletter, a fortnightly newsletter that gives insight into the investment markets.
For more from RHAM, visit https://www.rhasset.co.uk/
Recommended further reading:
Visit our section on investing in gold for a full list of articles, including: MoneyWeek's editor Merryn Somerset-Webb on why you'll regret it if you don't buy gold; William Rees-Mog's four reasons why gold will hit $1000 an ounce; and Adrian Ash's view on whether the bull market in gold is finished.
And to find out how you can make money from gold, click on the link below...
-
73% of savers plan to rely on partner’s pension in retirementA new survey suggests the majority of people may lack financial independence in retirement, with almost three-quarters set to rely on their partner’s pension
-
How much you need to follow the 25x retirement rule – will you have enough to be financially independent?We explain what the 25x retirement rule is and the amount you would need to be financially independent in retirement.
