muses of the moment

January 13, 2009

20-year Gold Bull Market

Filed under: Long term investing — totallygroovygirlfriday @ 10:07 pm

I read Jim Sinclair’s Mineset every day. It is an excellent reference for long term precious metals investing. This is one of the sites I really like, as Jim’s mission is to educate you, not sell you.

I learned most of what I know about Elliott Wave Analysis and Fibonacci from this site. Check out the archives if you like.

I have referred in past posts to the 20-year gold bull market we are in. I am using precious metals as a long term investment vehicle to preserve wealth against inflation and a falling dollar.

Two-thirds of my precious metal investments I buy on dips and hold. The other third I buy on the low of the large waves and sell on the high of the large waves. This allows me time to save more of my income and purchase at the bottom of the next wave down.

Here’s the latest major wave breakdown from Jim:

Major THREE up from $700 to $3,500 (a Fibonacci 5 times the $500 low);
Major FOUR down from $3,500 to $2,500 (a 29% decline);
Major FIVE up from $2,500 to $10,000 (also a 4 fold increase, same as ONE).

The time frame for each wave is questionable. But as I said we are in year 10 of a 20-year bull market.

I am sure someone with more knowledge of the minor waves could comment, but I am more interested in looking for the major turns. That way I don’t have to watch the ticker all the time, but still make a return on investment. With all the volatility in the market, I don’t like to be dizzy.

Today a reader did a very nice graph with all the “french curve” possibilities for gold. Jim’s website is: www.jsmineset.com

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