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The Gold Market Experiences Historic 70-Year Breakout!

Gold bars and stock market

The Gold Market has Just Experienced A Historic 70 Year Breakout From Oiloil and gold comparison chart

A recent article on King Word News reported that the gold market has just done something that it has not done for 70 years, and that is it has held its price while the crude oil market continues to decline at an alarming rate. There have also been a number of reports in the financial media that gold too is on the decline, yet when you look at how gold has been performing over the last 12 months, it has fluctuated between $1250 and $1005 an ounce. Compare that to oil on the other hand over the same 12 month period and you will see that oil has dropped from a high of $60.13 a barrel to its current price of $31.35 a barrel.

As you can see from the chart to the side, both oil and gold have historically (although the chart only goes back to 2006) over the past 70 years, run almost along side each other, albeit except through the recession of 2008/2009.

What this chart, along with other data shows us, is that although gold has dropped in price since its 2012 peak, compared to other commodities and in particular, oil, it is performing very strongly, in fact, it is holding.

So what we are seeing here in this historic breakout, through gold holding its price while oil collapses, is that Gold is possibly now entering a bull market. It is of course too soon to predict, and many experts are saying although gold is not in a bull market yet, it is coming in 2016, the question is when?

What this separation from oil has shown us is that a bull market is getting close, closer by the day. Check out BullionVault for more information on gold investing

 

 

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