In August 2009, I predicted a massive five-year bull run in gold and gold stocks, comparing the 13-year period from 2001 to 2014 to the tech stock bull from 1986-1999.
In February 2010, I wrote that the 13-year gold bull still had a lot more room to run. At the time, gold had pulled back to the $1,040-$1,070 window, and I mentioned that “smart money would be accumulating” and we should look for $1,300-$1,325 as the objective. Fast forward to October 2010, and we saw gold hit a new high of $1,351 this morning.
We are in the second year of the final five-year run I predicted, and this is when the general investing public becomes “aware” of the bull market. Most missed the first five years from 2001-2006, and then, while we consolidated for three years from 2006-2009, they fell asleep. It was not until gold broke to all-time highs that people woke up and started buying. This is typical in a super bull cycle; the behavioral patterns are always the same with the herd.
I am now looking for gold to continue to run during to about $1,480-$1,520 thanks to the stampeding herd before we have a strong correction.
I’m not pulling that figure out of the thin air, by the way. It’s an Elliott Wave-based pattern that I recognize and forecast in advance. Many investors who are briefly exposed to Elliott Wave Theory toss it out as mad science. That is a mistake.
For example, on Aug. 30, I predicted a huge breakout in silver to $26-$29 per ounce when it was at $18.75. This was purely based on the Elliott Wave pattern and the lack of awareness by the investing public at the time of the silver bull. It is also “poor man’s gold,” and as simple as that sounds, it is what drives the herd to invest. Look for silver to continue higher to those target zones before correcting.
But back to gold. Look for gold and gold stocks to continue powering higher than people can imagine over the next four years, and pick up some darts and throw them at some juniors while you’re at it.
If you’re interested in learning more about taking advantage of crowd psychology, you can check out our forecast service here.
Top 5 Stocks for the Fourth- Quarter Surge — Louis Navellier details five stocks set to deliver record earnings and jump 30%-50% in the next 90 days as the big money piles in. Get their names online here, including Louis’ buy-below and target prices.
