Gold is beginning to go vertical.
The precious metal first entered a bull market in early 2024 after trading in a range between $1,600 per ounce and $2,100 per ounce for the better part of four years. Since that time, gold has rallied 80% to all-time high prices of $3,800.
This historic run has many investors asking themselves: “when will this end?”
The answer, based on historic precedent, is likely “much, much higher.”
Throughout the history of the U.S., gold spent most of the time pegged to the $USD, as gold was viewed as “money” rather than a speculative asset. It was only after President Nixon ended the Gold Standard completely in 1971 that gold became a truly free-floating asset.
Soon after that, gold experienced its first major bull market. From 1970 to 1975, the precious metal rose from $34 per ounce to a high of $193 per ounce on its monthly chart, or a rally of over 400%.
The precious metal then experienced a two-year bear market, before beginning its second and largest bull market, rallying from a low of $104 per ounce to then-all-time highs of $835 per ounce, or a rally of over 700%.
By way of contrast, during this recent bull market in gold the precious metal rally has only rallied 80%. To be clear, I’m not saying gold will replicate its gains of the late 1970s, which would mean a rally to over $14,000 per ounce. But what I am pointing out is that when bull markets in gold really get going, things can get ridiculous. And as I write this today, we’re nowhere near that status yet. Again, gold hasn’t even doubled in value from when the bull market breakout began.
