Some people are concerned out there that gold is too high and will be coming down. My answer is, I hope it does. Ups and downs are part of any healthy bull market. The key to investing in anything is to identify trends. Gold has closed higher than the previous year close 8 years in a row. This is an upward trend. Gold has come all the way from a low of $252 per ounce. Sure there have been ups and downs all along the way, but that is what you want. If gold only rose and never corrected then we would be getting close to the end of the bull market.

Money in gold is made in the long-term. Buy and hold though the trend cycle. Don’t be scared when gold goes up and then corrects. For example, in March of 2008 gold rose to $1,032 per ounce and then corrected all the way down to $792 per ounce in October of the same year. People are always going to take profits all the way through the trend cycle. Gold as of this writing stands at $1,123. If you would have stayed out of the gold market just because gold was falling rapidly for 7 months in 2008 you would have missed out on some serious gains.

Will gold rise in the future? No one knows for sure, but what does the trend cycle say? The trend cycle would suggest that we still have a ways to go before this gold market tops out. The simplest way to analyze this would be to look at the three phases of a bull market and see which phase we are in. Many experts would suggest that we are in the second phase, which would point to the fact that we haven’t seen the third and final speculative/panic phase where gold will rise rapidly. To read more on the three phases of a bull market click on the underlined phrase in this sentence.

Any healthy gold market will have ups and downs, therefore it is important to identify trend cycles. We are in a rising trend currently so don’t let market corrections scare you, even if they seem to be a big one.