Gold doesn’t break records too often.
It’s one of the most stable assets. It preserves value over generations.
But when the 18.6-year real estate cycle enters the stage that I call the “Eleventh Hour,” it’s frenzy everywhere.
Everything changes… and gold, like other assets, from real estate to stocks and beyond, soar.
And not only do they do that, but they do it in a spectacular fashion.
Gold’s Winning Streak Continues
You might have missed this fact… but gold has been setting records not only in terms of price but also in terms of how fierce its ascent is.
From S&P Capital IQ:
Gold prices have not closed below $2,000 per ounce for 50 days, easily outshining the precious metal’s 14-day streak in May 2023, its previous best run.
“Along with the two major wars between Russia and Ukraine and between Israel and Hamas, the recent attack on a US base in Jordan by an Iranian-linked drone threatens to widen the latter conflict and potentially involve the US in the Middle East,” [S&P Global Commodity Insights analyst Aude] Marjolin wrote.
“Moreover, with an uncertain picture regarding inflation as disrupted trade counters expected slower GDP growth, and then further down the road, the US presidential election, 2024 has the hallmarks of a volatile year for gold prices.”
Record highs for a record number of days… sounds familiar to me.
And yes, geopolitics and macroeconomics matter.
But what you don’t see in this analysis is the impact of the 18.6-year real estate cycle.
As always, it drives most assets up in value at an unprecedented rate.
And my knowledge of the cycle tells me that this trend is going to continue.
What’s Next for Gold?
Make no mistake, I’m not a gold bug. I’m focused on real estate investments first and foremost.
But when the market enters the “Eleventh Hour” stage… I expect assets to rise pretty much across the board.
Record prices, record winning streaks…
It becomes a “higher for longer” market, but not in the way mainstream media talks about it.
Assets reach new levels and refuse to back down… that’s where we are now.
And gold is no exception.
The problem is that investors get comfortable with this “everything rally” and become complacent.
They don’t know when it will stop. But it will, and my knowledge of the 18.6-year real estate cycle tells me when to pull the plug and leave.
My readers at The Signal will learn about this first.
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Phil Anderson
Contributing Editor, Inside Wall Street with Nomi Prins