According to one expert, gold is on the verge of a significant move upward. Research shows that, since the start of this bull market in 2000, after each serious correction, gold has gained at least 80% from the bottom of the correction within three years.
Willem Middelkoop
Jun 17 2013, 05:05
Seeking Alpha
Gold is down 29%, after a correction that has lasted two years to date. However, we could well be on the verge of a significant move up again. Our research has shown that, since the start of this bull market in 2000, after each serious correction, gold has gained at least 80% from the bottom of the correction within three years. Previous corrections lasted between 16 and 19 months.
Clearly, a correction seems long overdue and all technical indicators show oversold levels not seen in years.
History shows that, in an ideal investor-world, every bottom in gold provides for huge opportunities in buying gold shares (HUI-index). We have seen major bottoms once every four years (2000, 2004, 2008/2009 and now 2012/2013?). Returns from these bottoms to new highs returned between 310% and 417%, within three years.
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