7 facts proving we are in a long term powerful uptrend in Gold and Silver

“The trend is your friend.” Do you know an easier way to become more wealthy then just investing in a trend? It’s easy and you decrease risks. Nice, isn’t it ?

Below you can find several charts about 7 topics. They all prove that we are in a powerful long term bull market in gold and silver; it’s so powerful that you can easily call it a wealth cycle.

If there is one thing we can advice, it would be to have a critical look at these charts. Can you deny these facts? If not, you will start seeing what is really going on in this world, on a global scale; it will change your world view entirely. For those who are familiar with these trends, it’s just another confirmation of what you already know.

1. The price of gold and the price of silver are in a perfect uptrend for the past 10 years (not at all parabolic yet) , moving in a range within an upper and lower band. Do you know a more perfect bull market than this one ? (chart courtesy: Sharelynx.com)

Gold Long Trend Line1

Perhaps you would think we are at the top and the gold price or silver price cannot  go higher. While it’s true that we are close to historical highs in the price of gold in NOMINAL terms and retraced a bit from the highs in the price of silver, we are nowhere near a top when look at the gold price adjusted before inflation. (chart courtesy: Erste Group)

 

2. There is a positive, almost one-on-one correlation between the debt ceiling in the US (which keeps on increasing) and the price of gold in US dollars. (chart courtesy: Sharelynx.com)

us debt gold price 2000till2010 1024x697

3. As the price of gold in US dollars increases, all currencies against each other keep on decreasing. Governments have a benefit to debase their currencies, being to have relatively less burden of their debts. This results in the price of gold and the price of silver in all currencies to increase. (chart courtesy: Board of Governors of the Fed and Global Gold)

major currencies decline long term

major currencies decline 2000till2010 1024x730

Now the picture becomes worse when you look at currencies priced in gold. Let’s take a 10-year chart of major currencies compared to the price of gold. (chart courtesy: Bullion Management Group)

major currencies decline vs gold

By consequence, products and services expressed in local currencies become more expensive. But when you price the same products and services in gold instead, they become cheaper. (chart courtesy:  PricedInGold)

natural gas priced in gold 2007till2012

food price index in gold 1990till2012

 

4. One strong trend is the increase in demand for physical gold from Central Banks all over the world. Recently, they became even net buyers of gold. (chart courtesy: Chris Martenson and Sharelynx)

Central Bank Gold Holdings 2002till2011

russian central bank gold reserves 2006 2011

 

5. While all the above trends are taking place, the supply of gold and silver are not increasing at the same pace as demand. There was a time when gold was abundantly available, just a couple of meters below the surface. That’s history; nowadays it’s very hard for gold and silver discoveries to take place. What do you think what happens with prices when there is a higher demand for a good with a stable or decreasing supply (in relative terms, compared to demand increase) ? (chart courtesy: Casey Research)

gold supply vs demand 1999till2011

silver supply vs demand 1999till2011

 

6. Do you know how much is invested in gold & silver? The answer is less than 1% of all invested assets all over the world. That’s really nothing. Can you imagine what will happen with the gold price or silver price if a small percentage of the investment world is moved to gold or silver ? (chart courtesy: Sprott Asset Management)

gold investments compared to total invested assets

 

7. The gold bull market is currently in stage 2 of the typical 3 stages. The third phase typically is a mania; we know for sure that we aren’t there yet … so now is the time to position yourself by accumulating gold and silver. (chart courtesy: Contrarian Investor)

gold bull market three phases

Here is another way to look at it: compare this gold bull market to other long term bull markets during the past 40 years. You can compare it with the dotcom bubble or the gold bull market of 1970 – 1980. (chart courtesy: Agora Financial)

gold technology bull markets

 

Author: Desk of GoldSilverWorlds.com

Date: February 2012

 

Additional recommended readings: 7 benefits of owning gold and silver and 7 tips to increase your wealth with gold and silver

 


 

Beginners’ Guide – All Articles

 

INTRODUCTION TO THE WORLDS OF GOLD & SILVER

What’s This Financial Crisis About and What’s The Link With Gold & Silver?

Physical Gold: antidote against the ongoing global debt crisis

7 key benefits of owning gold and silver

7 Ways to Invest in Gold  and  7 Ways to Become a Silver Investor

Is Silver a Safe Investment  and  Are Silver Coins a Good Investment

Buying Silver is a Volatile Investment  and  The Value of Silver

Why To Buy Gold Bars as a Gold Investment

Understanding Gold Coin Prices

Understanding Gold Price Per Ounce

 

7 TIPS TO INCREASE YOUR WEALTH WITH GOLD & SILVER

Introduction: Now is the time to invest in gold and silver – 7 tips to increase your wealth

Tip 1: Gold and silver is for everyone – You too should own it

Tip 2: Be sure to have physical gold & silver

Tip 3: We are in stage 2 in the long term gold & silver bull market

Tip 4: Be prepared to see sudden price drops

Tip 5: Timing when buying is crucial

Tip 6: This is the century of silver

Tip 7: Gold & Silver stocks can have high yields

 

IS NOW THE TIME TO BE BUYING GOLD & SILVER?

7 facts proving we are in a long term powerful uptrend in Gold and Silver

Is This the Best Time to Be Buying Gold and Silver?

Gold Investments in 2012

 

THE BEST GOLD & SILVER INFOGRAPHICS

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Own physical Gold? This infographic explores Vaulted Gold as one of your options.

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