Gold on Track for Its Longest Historical Bear Market
by Tiho Brkan, The Short Side of Long
This week Gold prices closed at the lowest level since early 2010
Source: Short Side of Long
Precious metals, together with Gold, continue their bear market downtrend. Another month, and yet another low. Silver, Platinum and Gold Mining companies arenāt too far behind. For now, Gold still manages to trade above a $1,000 per ounce physiologically important level, but the buffer is only about $57 before the 9 handle approaches. The current bearĀ market is now almost 4 and half years oldĀ (222 trading weeks), and has declined by almost 45% on the closing basis.
There is only one other bear market that has gone on for longer, and thatĀ happens to beĀ 1988 to 1993. However, losses were nowhere as dramatic as they are today. Finally, as the chart clearly shows, there has only been one bear market since 1969 that saw price of Gold decline by 50% or more. Are we in for a repeat?
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