Why Buy Gold?
Up-date N 25 / January 7, 2009 1980 to 2009: From bear to bull: the multi-year trends and the long-term picture The chart above clearly shows one thing: long-term trends often last many years. The bear market that started in 1988 ended in 1993. The up-swing that followed lasted three years from 1993 until 1996 and culminated in what may be called a false break-out. Then another bear-market unfolded taking the gold price down to $ 250 over a period of almost four years. Then the spike in the gold price (1999) came as a consequence of the central banks’ announcement that they would be limiting their gold-sales. The 1999 bottom was tested again at the beginning of 2001. At that time, when few believed that any money should be put into precious metals, the present bull market started; a bull market we deem has still a long way to go in spite of the present correction. In 2006, the gold price reached a fresh recovery high of $ 720.1 after a steep rise of roughly 80%. The correction that fol
