On the monthly chart it's very obvious that gold created a almost decade long base where it traded sideways. Typically such moves indicate accumulation of the asset, and on the charts look like "cup and handle" formation. Over last year and a half price has been in the "handle" part of such formation. It is very bullish long term for gold. Outside of the chart there are also obvious reasons for higher prices in gold. Fed has been trying to achieve inflation, which is finally here. A lot of commodities already had large price increases over the last 1-2 years and gold seems to be the last one in line. I came to the conclusion that once price is on the move we might see higher levels than everyone anticipates. I dont have a specific price target, but I noticed a trendline that is extending from 2006-2011 bull market. If price were to start going up vertically in the next few quarters it would have to reach $1,350 to retest that trendline. Assuming price wont go immediately vertically, and that bull markets might take years to complete, say in 6 years that trendline will be hoovering around $3,750, and price intersection with that trendline goes up dramatically as time goes on.
I think the moral of the story for me here is simple: $$ invested in gold has a possibility to 9x-25x over next 6 years or more over longer time frame. Considering how gold has been hated lately and Bitcoin proclaimed as a "new digital gold" by a lot of media outlets only makes this case stronger. Once gold is running and everyone is talking about it, then it will be time to reduce exposure and sell.
I think the moral of the story for me here is simple: $$ invested in gold has a possibility to 9x-25x over next 6 years or more over longer time frame. Considering how gold has been hated lately and Bitcoin proclaimed as a "new digital gold" by a lot of media outlets only makes this case stronger. Once gold is running and everyone is talking about it, then it will be time to reduce exposure and sell.