With gold prices outpacing stocks this century, some Americans feel underinvested in gold. Others wish they had owned a larger position earlier, giving them more freedom to sell into price rallies. Too often, gold is seen as a singular, isolated buying decision rather than a portfolio enhancement.
In this regard, a common question asked by investors is: “Have I missed the run in gold?” The simple answer is no. Discussed here is why that is true, along with “When will gold stop?” and “How high can gold go?”
Gold has appreciated in terms of dollars for as long as the dollar has devalued, which is to say, practically forever. However, gold does not move in a straight line. Gold’s more rapid up-move is called a “run” in gold, but more accurately is cyclical momentum fueled by investor demand, geopolitical environment and commodity fundamentals.
With this in mind, gold analysts see the bull market in gold continuing. Of course, in the short term, markets naturally ebb and flow, which requires patience and can also present opportunities. The geopolitical environment is favorable for gold, and until those conditions improve or investor demand becomes exhausted, analysts have to project the run to march on. For a strategy to get on board the run, see the Bottom Line tool below.
When will the U.S. Dollar, a simple fiat currency managed by politics, stop its devaluation? Never? Yes, never. That is when gold will stop, in the long term anyway. However, if your view of the run in gold is limited to this century, or more recently to the gold market breakout above $2,000 in 2024, then let us dive deeper.
The 21st Century Gold Run is driven by market dynamics fueled by macroeconomic Keynesianism, realities that are unlikely to halt given the structure of modern democracies. These same dynamics also cause shorter-term boom-and-bust cycles, periods of acceleration followed by consolidation, during which gold pauses at certain price levels before garnering steam for the next run.
The present gold market run has been strong for some time, with little sign of fatigue, aside from the need for time to adjust to prices beginning with 4,000, for example. The primary factor to monitor is the success of any White House Administration in implementing pro-business, anti-inflationary fiscal policy. There is a chance that Trump will succeed in turning the tide on poor fiscal management. Just as Reaganism marked the end of the 1970s gold run, Trumpism could lead to the end of today’s gold run.
Presently, gold market participants are not giving this concept high odds.
How high is “high” for gold? Like a hundred times before, gold prices seem high based on a person’s past perception, but in the future, today’s prices will look cheap. The same could be said for other commodities, homes, consumer products and many other assets.
There is no telling when this current run in gold will end and at what price, but it will rest. If price levels of Monex Spot Gold in the $4,000s hold for a while, then a subsequent market advancement phase reaching $8,000 in the many years ahead would not be surprising, given the background in other articles.
Have investors missed the move in gold and silver? Not likely. The surest way to miss the move altogether is to stay out of the gold market and deny your investment portfolio the benefits of gold and silver bullion.
For those who hesitated to join the gold bull market earlier, there is a simple, practical tool. Take the emotion away, and think mathematically. Buy one-half or one-third of your intended investment and hope the market goes down so you can buy more at a lower level. If it does not, you are still happy you made the move as quickly as possible rather than remaining on the sidelines.
That’s the bottom line.
For investors questioning entry, a Monex account representative can discuss physical gold ownership and long-term considerations.
Disclaimer: This article is for informational purposes only and does not constitute investment, legal, or financial advice. Market observations are presented for educational context and should not be interpreted as recommendations.
The Royal Canadian Mint’s Commitment to Quality In 1979, the prestigious Royal Canadian Mint began production of the 1 oz. Canadian Maple Leaf gold coin with a consistency of 99.9%. At the time, the only competitive private investment coin in the market was the 91.67% pure gold South African Krugerrand. The increased gold purity consistency more…
The Iconic Maple Leaf Known for its vibrant autumn colors, the maple tree is a prominent species in the eastern Canadian landscape. While the tree itself was an invaluable part of the indigenous Canadians and early settlers’ lifestyle, the Canadian government did not officially adopt the maple leaf as its national symbol until 1965. Today, more…
Want your offer sooner?
Faster delivery
is available by phone.
800-444-8317
Faster delivery is
available by phone.
Gold 
