Gold: Down, but Not Out...

11/28/2011 12:01 am EST


Mary Anne & Pamela Aden

Co-Editors, The Aden Forecast

Over the past ten years, gold has surged over 600%. This leads many to believe gold's days are probably numbered, or it's too late to buy and so on.

But looking at the facts, it sure doesn't look that way. On the contrary, gold is likely headed much higher in the months and years ahead, and it's still a good buy. Why?

There are dozens of reasons why but some of the most important ones are:

  • Demand remains extremely strong around the world. That's especially true in the emerging countries, like China and India.
  • Central banks are also buying gold in a big way.
  • As the US dollar continues to decline, the global reserve status of the dollar is being questioned. This, in turn, is driving the demand for more international gold reserves.
  • In the 1970s, gold rose over 2000% and the situation is now far more serious. Aside from the US credit downgrade, deficits have been over $1 trillion for three years, unemployment remains high, and the situation is similar in Europe. The world is nervous, which adds to gold's desirability as a safe haven.
  • The investing public has not yet joined in on this bull market. That's usually the case once a major bull market is underway, and gold is clearly in a major bull market.
In the meantime, gold has been volatile. But the fundamentals show that it will likely take center stage again soon as it continues on its upward path.
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