Excerpted with permission of the publisher John Wiley and sons, Inc. from The Trader's Great Gold Rush by James DiGeorgia. Copyright (c) 2010 by James DiGeorgia.
Gold's fundamentals are very strong, even after several years of rising prices. All the forces that drive gold's price up are aligned in the same direction. Together, they will combine to force gold's price up to $2,500 in the not-too-distant future. The exciting thing about gold is that its bull markets tend to be monsters. Previous bulls have seen the asset's price multiply by five and even six times. In the past, we've seen the price multiply by 19 times over the course of a decade. Will the price go up in a straight line? Of course not. No market ever does that. I expect one or more corrections along the way - sharp plunges by as much as 20 or 25 percent. But these will be mere bumps along the road. In fact, savvy investors will treat them as the buying opportunities that they are. Rarely does any market see all its price-determining forces lined up the same way - but that's what's going on in gold today.