“We are now on the cusp of the next major bull market in the investing world.”
It’s gold. MarketWatch reports the founder of ElliottWaveTrader—Avi Gilburt—believes the yellow metal is about to start its next leg higher. Its ultimate top: $25,000 per ounce.
Now, before you rush out to your local coin dealer… Gilbert says it’s a 50-year move to that price. In the near term, we’ll see gold bottom somewhere between $700 and $1,000 per ounce. He predicts this will happen within the next six months.
Gilburt missed pinpointing the 2011 top in gold ($1,921 per ounce) by just $6. His calls on the gold market since 2000 have been accurate overall.
If he’s correct again, it will mean an enormous gain for gold owners and gold mining investors. He believes the Gold BUGS Index (or HUI, an index of the world’s 15 largest gold miners) will witness a fourfold to fivefold increase over the next five to seven years.
Regular Daily readers know no sector booms and busts as much as natural resources. The HUI’s been in “bust mode” since September 2011. But once it reverses, triple-digit gains lie ahead. And that’s the dangerous part…
If you want to own gold in the hopes it will explode higher… you’re thinking about this asset all wrong. It will lead you to overinvest in some of the worst, most volatile businesses on the planet. Gold mining is a 100%-speculative investment… never commit more than a small fraction (5%) of your overall portfolio to it. (And be certain to maintain trailing stop losses and appropriate position sizing.)
We do recommend all investors own some physical gold. It’s the ultimate “insurance policy” against governments’ and central banks’ debasement of our currency. But gold is a defensive asset. You want to buy it low… hold it forever… and hope you never have to spend it.
If you find yourself salivating at gold’s upside potential, click here to learn Mark’s perspective on gold investing. It will keep you grounded. Then, click here to review our 2015 Asset Allocation models. They’ll help you determine the exact amount of physical gold you should own… and the limits on speculative investments you must maintain.