Tip 3/7: We are in stage 2 in the long term gold & silver bull market – Now is the time to enter

Tips to increase your wealth by investing in Gold & Silver

Tip 3: We are in the second of the 3 stages within the long term gold & silver bull market. We are still far away from the top. 

Yes you hear and see often in the mainstream media that gold & silver are in a bubble. The funny thing about it: this message is given over and over again for the past 10 years … while the gold and silver price keep on moving up.

Don’t be fooled by day-to-day noise in the mainstream media. You need to focus on the real experts who remain neutral and objective, who can observe accurately what is happening around us. They will tell you the truth. Media, banks and governments all have their own benefit; so it’s a very natural phenomenon that they will not tell you the naked truth.

Please take the time to review this infographic, which shows gold is not at all in a bubble.

From undervalued to fairly valued to overvalued

A characteristic of every market is that it goes from undervalued to fairly valued and finally overvalued. These are long term trends and they are called “wealth cycles”. The key to be successful in your personal or professional investment life, is to get rid of overvalued assets in order to accumulate undervalued assets.

We are in a long term wealth cycle in hard assets currently (think about commodities like metals, food, etc). This wealth cycle comes after the long term cycle in paper assets (equities, paper money, bonds, etc). Governments are fighting with all their means to keep the old cycle going however, by keeping interest rates artificially low (lowest in history of men) and by “printing” massive amounts of money. So it could look like economically things are going well, because eg the stock market index is relatively high. But if you dig a little bit deeper, you’ll find that the value of money is historically low, debts are historically high, unemployment is rising fast.

Please take the time to look into the video presentation and white paper that GoldSilverWorlds created together with GlobalGold, discussing the ongoing global debt crisis.

You simply cannot fight long term trends. It’s time for the old cycle to switch to the new one. And the more governments try to extend it artificially, the more intense the transition will be from old to new, resulting in a boom of the new cycle. The most logic outcome of the current actions of governments, is a severe collapse in paper money (collapsing currencies, which is already starting to take place), resulting in high interest rates and high inflation rates. In that environment, the only safe haven is gold and silver, in physical form. Do you own it already ?

Because of the global scale in which all this is happening and given the extreme levels we are reaching, we can assume with a very high probability of being correct, that we are currently right in the biggest wealth transfers in history: from paper assets to hard assets like gold, silver and other commodities.

Gold and silver are still undervalued

If you look at the charts of the gold price or silver price, you might think that the precious metals are overvalued. You could be wrong. Expressed in nominal terms, the long term gold price looks high. But if you look at following indicators, you’ll see that we are nowhere near a top :

  • When taking inflation into account, the gold and silver price are much lower than their peak of 1980.
  • When looking at the personal ownership of gold and silver, you’ll see a ratio of roughly 1:10.000 people in the Western world who own the metal.
  • When comparing the current gold and silver investments with the ones at the top of the previous bull market in 1980, you’ll see a ridiculous low amount of invested assets in precious metals today.
  • We did not see any parabolic move of the gold or silver price. If you look back to 1980,you’ll see what parabolic means.

And be sure, the “smart money” is aware of the current undervaluation of gold and silver. They always detect these long terms trends (the wealth cycles) well in advance. They are ahead of the curve; the past ten years they have been accumulating slowly but surely gold and silver.

As a final note, can you imagine what it will look like when we go to fairly valued gold and silver prices? Can you imagine what will happen if we achieve in the mania phasia, which is the third and last stage of the bull market (overvaluation). It will probably happen, somewhere during the years ahead. Need an taste of what could happen in such a situation? Then have a look at the gold price and silver price back in 1980: the gold price went from 34 US dollar to more than 800 dollar in half a year.

One thing seems clear to us: the current gold bull market has a long way to go.

 


 

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

Is gold a bubble? Look at this Infographic for the answer.

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

Infographic: all you need to know about Gold in the world