Categories: General Market Commentary / Precious Metals
Topics: General Market Commentary / General Precious Metals

Sprott's Thoughts Gold Equity Market Cycles

Sprott's Thoughts

Gold Equity Market Cycles

Steve Todoruk

Over the past 45 years there have been 7 bull cycles and 7 bear cycles with varying duration and percentage gains.

On average, from the bottom of a bear market to the top of the bull market cycle, gold equities have risen approximately 500%. Better bull cycles have yielded returns of up to 760%.

No bear market was as horrific as the one just experienced from October 2012 until mid-December 2015. Does that mean that the new gold market we are currently in will last longer and provide opportunity for even stronger gains than those experienced in previous bull cycles?  Only time will tell.

Since the start of 2016 many gold equities are up an average of over 110%, and   several are up more than that.

Only one  year ago, during the depths of an ugly bear market, many investors said repeatedly that they had been  so disappointed that they would not enter the gold equity space until they could clearly see in the rear view mirror that the bear market was behind them. Those investors were comfortable leaving the early money on the table.  They were willing to exchange peace of mind of not buying in only to find it was another false start and quickly riding their stocks lower yet again.

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