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Merry Christmas and a very Happy New Year with the coming Gold Explosion

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GROVER COLLECTION

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If you think Gold is weak your wrong it's about to explode!!!

Despite a drop in prices, the gold bull market is about to get stronger.

The fundamentals supporting today's gold bull market have intensified exponentially over the past several years. And now the powder keg is getting ready to blow.

When it does, investors who own gold, gold stocks, and other gold-related investment vehicles will reap handsome rewards.

Sure, some rewards will be larger than others. Gold stocks, for example, typically yield a higher return than physical gold. However, there's also a significantly higher degree of risk associated with gold stocks compared to physical gold, which has proven to be a safe investment for thousands of years.

 

Gold could go over $5,000!

You see, to get an idea of what to expect in the future, we always look to the past, you should know by now I always have my eye in the past.

During the great gold bull market of the 1970s, the average monthly gold price increased from under $35 to over $675 an ounce... representing a 1,833% gain.

If today's gold bull market makes similar moves forward, gold prices could skyrocket well past $5,000 an ounce.

I know your thinking gold prices at $5,000 may seem like a stretch, especially considering the metal hasn't had much strength over $1,000. Nevertheless, $5,000 an ounce for gold is absolutely possible. Here's why:

How a Gold Bull Market Works

Every major gold bull market in modern history has consisted of three main stages:

1. Currency Inflation Stage

2. Investment Demand Stage

3. Mania Stage

 

During these three stages, gold prices typically rise in a parabolic upswing, which ultimately results in a sharp, skyrocketing price spike. So far in today's gold bull market, we've seen evidence of the first two stages.

During the first stage of a gold bull market, prices increase because of currency devaluation. In this bull market a dramatic drop in the value of the US dollar against other world currencies has lifted gold prices over the past 7 years. This devaluation is evident in the 42% drop of the US Dollar Index between the summer of 2001 and spring 2008.

In the second stage, gold prices continue to grow due to increased investment demand. Attracted by the modest gains of the first stage of the gold bull market, investors begin to buy gold as an investment, which further snowballs the price of gold higher. And with the introduction of the popular gold ETFs?and similar products?investment demand has had incredible strength since the beginning of this gold bull market, growing in terms of both tonnage and dollar demand.

Again, the first and second stages of a gold bull market generally return considerable gains. In fact, gold prices in this bull market have increased as much as 306%.

But it's the third and final stage of a gold bull market that can turn everyday investors into instant millionaires.

Gold's Mania Stage:

There's no rush like a gold rush, and a speculative mania can kindle an inferno of popular greed that rivals that of the Conquistador's legendary lust for gold.

During the third stage of a bull market, mania buying finally turns gold's parabolic upswing into a blistering price spike.

We saw a similar price spike in the final six months of the 1970s gold bull market, when gold prices rocketed nearly 200%... leaving a trail of nouveau-riche investors in the wake.

Make no mistake. The mania stage is coming!!!!!

I placed a couple of quick orders and here's one of them, an attractive 1907 Indian MS63 with lustrous eye appeal and sharply struck.

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