The recent Mining Share Panel at the New Orleans Investment Conference convened leading voices in the gold market, all of whom reached a consensus that the current bull market is far from over. Experts analyzed various factors contributing to the ongoing upward momentum of gold prices, focusing on the market’s current phase.
Brien Lundin, editor of Gold Newsletter and the conference host, expressed strong belief in the enduring strength of the gold bull market. He suggested that the price of gold could potentially soar to between US$6,000 and US$8,000 per ounce, indicating significant growth prospects. Lundin likened the current stage of the mining share market to the fourth or fifth inning of a baseball game, implying that there is still plenty of action to unfold.
Market phases and historical context
Another panelist, Jeff Phillips, echoed Lundin’s sentiments, suggesting that we are in the early innings of this bullish phase. He anticipated a temporary pause in the market’s momentum, akin to a rain delay in baseball, but remains convinced that we are experiencing a remarkable bull market.
Phillips referenced the robust performance of gold from 2003 to 2007, which was interrupted by the financial crisis. While he foresees a possible correction in the near future, he advocates for a patient and long-term investment approach.
Understanding market trends
Jordan Roy-Byrne, editor and publisher of the Daily Gold, emphasized the importance of distinguishing between secular and cyclical bull markets. He defined a secular bull market as a major long-term trend that can persist for over a decade, while a cyclical bull market typically lasts between two to five years. Roy-Byrne predicts that the current cyclical bull market could extend for several more years, though he cautioned that prolonged cycles often lead to significant corrections, similar to those witnessed in 1975-1976 and 2008.
Despite believing that a correction is still somewhat distant, he firmly asserted that such an event will occur before the eventual conclusion of the secular bull market.
Factors driving gold’s growth
Jennifer Shaigec, principal at Sandpiper Trading, pointed out that ongoing purchases of gold by central banks indicate that we are still in the early stages of the bull market. She noted that the fundamental reasons behind central banks’ gold acquisitions remain intact and may even accelerate in the future.
While acknowledging the typical seasonal dips gold experiences, particularly at this time of year, she urged investors to maintain a long-term perspective. Drawing comparisons to 2008, when gold saw a decline of about 22% before rebounding past previous highs within six months, she highlighted that gold has historically been one of the first assets to recover following market downturns.
Market support levels
Nick Hodge, publisher at Digest Publishing, discussed current support levels for gold, indicating that short-term support is around US$4,000, while long-term support hovers around US$3,600. He emphasized that the fundamental drivers propelling the market, including national debt and central bank buying, remain strong.
Hodge also noted that silver has not yet experienced its anticipated surge, suggesting that the precious metals market still has room for growth. He pointed out that the GDX and GDXJ indices have started to outperform gold since August, reinforcing the notion that the precious metals bull market is still in its early to mid-stages.
Looking ahead in the gold market
Brien Lundin, editor of Gold Newsletter and the conference host, expressed strong belief in the enduring strength of the gold bull market. He suggested that the price of gold could potentially soar to between US$6,000 and US$8,000 per ounce, indicating significant growth prospects. Lundin likened the current stage of the mining share market to the fourth or fifth inning of a baseball game, implying that there is still plenty of action to unfold.0
Brien Lundin, editor of Gold Newsletter and the conference host, expressed strong belief in the enduring strength of the gold bull market. He suggested that the price of gold could potentially soar to between US$6,000 and US$8,000 per ounce, indicating significant growth prospects. Lundin likened the current stage of the mining share market to the fourth or fifth inning of a baseball game, implying that there is still plenty of action to unfold.1
Brien Lundin, editor of Gold Newsletter and the conference host, expressed strong belief in the enduring strength of the gold bull market. He suggested that the price of gold could potentially soar to between US$6,000 and US$8,000 per ounce, indicating significant growth prospects. Lundin likened the current stage of the mining share market to the fourth or fifth inning of a baseball game, implying that there is still plenty of action to unfold.2
Brien Lundin, editor of Gold Newsletter and the conference host, expressed strong belief in the enduring strength of the gold bull market. He suggested that the price of gold could potentially soar to between US$6,000 and US$8,000 per ounce, indicating significant growth prospects. Lundin likened the current stage of the mining share market to the fourth or fifth inning of a baseball game, implying that there is still plenty of action to unfold.3
Brien Lundin, editor of Gold Newsletter and the conference host, expressed strong belief in the enduring strength of the gold bull market. He suggested that the price of gold could potentially soar to between US$6,000 and US$8,000 per ounce, indicating significant growth prospects. Lundin likened the current stage of the mining share market to the fourth or fifth inning of a baseball game, implying that there is still plenty of action to unfold.4