Gold Ready for Parabolic Take Off? - Market Oracle

http://www.marketoracle.co.uk/Article20514.html

GOLDEN TIMES - Gold is amazing. It’s been very strong, hitting record highs last week. Its bullish price action means investors and governments know it’s time to be in safe assets. The result is, gold continues to benefit as the world’s #1 safe haven.

GOLD IS MONEY

We’re also seeing first hand gold’s role in the monetary system. Few people understand gold’s importance over other forms of wealth but if there was ever a doubt, it’s been erased by gold’s reaction to ongoing financial developments.

Gold is money. Most governments regard gold as a monetary instrument, and it has been the international currency for thousands of years.

BIG PICTURE: Gold is best

Considering the big picture, there’s no doubt gold is the best investment. The mega trend changed when the new century began. A clear shift away from paper assets (like stocks) and into tangibles (like gold) took place and a new era began. It wasn’t obvious to the average investor because mega trends take lots of time for investor’s mentality to gradually change.

Even though gold’s current rise is already in its tenth bullish year, the trends are still solidly in gold’s favor. These mega trends say… stay the course… stay with gold and gold related investments.

Mega bull markets also take time to run their course and this time will unlikely be an exception. Bull markets tend to end in euphoria, when everyone’s invested and they can’t get enough of it. Gold is far from this.

Comparing the current 10 year gold run to the 12 years leading up to the 2000 tech explosion in the stock market, and gold’s bull market in the 1970s, you can see that gold’s rise is still tame (see Chart 1). A bubble is still well into the future.

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