18 June 2010
Gold could be entering second bull market stage
NY Times article could indicate tipping point for Gold PR
Many investment professionals and amateurs alike subscribe to the 3 phase anatomy of a bull market. The first phase is largely characterised by stealthy gains where only the “smart” big money moves into the market, and the public remain largely unaware, and the media are largely against investment in the market. As prices continue to rise, this starts to give way to a second stage, where the public starts to become aware, typically lots of investment vehicles are created for “retail” investors to invest, interest builds, and the media start to become turned on. This phase eventually gives way to a third Euphoria phase, where the Public heavily invest, the smart money exits and usually the bubble bursts.
Precious metals having spent much of the last decade in an extended first phase of the Bull Market, may have just moved into the second phase this month. With a serious article in the NY Times on Gold, it may just signal a tipping point for the media at least to start to turn onto Precious Metals as an asset class.
Precious metals having long been perceived as the preserve of Central Banks, Miners and Gold Bugs, are starting to gain traction among the public, worried by depreciating currencies, ballooning deficits, and falling equity markets.
At BullionSupermarket.com, where we monitor precious metal news daily, the increasing number of Gold and Silver, stories in “Mainstream” financial media, rather than traditional industry sources, indicates the tide may have turned for what Keynes described as a “barbarous relic”.