There was a full-blown gold mania underway when I started in the world of finance…
It was 2010. You couldn’t even turn on the TV without seeing ads for the metal. And every time you drove down the street, you’d see more signs shouting “WE BUY GOLD” in shop windows.
The metal was years into its bull market by then. Prices were soaring. And investors couldn’t get enough. It was pure mania.
It’s a different story today. Gold recently broke out to an all-time high… But as we covered two weeks ago, sentiment is still far from euphoric levels.
The recent rally did hit a rare level, though. The metal rallied for nine straight days. And according to history, that’s a strong sign of more gains to come…
When an asset goes up day after day, it means there are more buyers than sellers. They want to own that asset. And their bids aren’t slowing down.
This situation doesn’t happen often… even in bull markets. And it’s a signal that a boom is heating up.
Gold recently moved higher for nine straight days. That’s darn rare. This kind of winning streak has happened just seven times over the past 50 years. Take a look…
A multiday spike like this is important… because rare setups like these point to continued gains.
To see it, I looked at every unique instance of gold rising for seven or more consecutive days. This gives us a bigger sample of 31 cases. Gold tends to keep rising after these setups. Check it out…
Long-term gold investors have made good money. The metal has returned 5.2% per year over the past half-century.
That includes plenty of ups and downs along the way. But buying at the right time – after moves like these – can lead to much better returns…
Similar setups have led to 2.4% gains in three months, 4.4% gains in six months, and 8.8% gains over the following year. That’s solid outperformance in all cases.
Even better, most investors are still completely overlooking gold right now. That’s almost never the case when an asset reaches new all-time highs. And it tells me that the current rally isn’t about to end… It’s just heating up.
The masses will wake up to what’s happening in the gold market. They always do. And we want to be positioned to profit before the next move higher.
That’s why you should consider owning the metal right now. New highs are here… But much higher prices are likely in the months ahead.
Good investing,
Brett Eversole
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Source: Daily Wealth