Gold bull market reached its zenith during the years 1970s. Economists as well as experts pertaining to the conditions prevailing in the gold market expressed several opinions. The write up below envisages certain facets of the same.
Secular gold bull market may be referred to as that, which depends on the supply as well as demand of the private investors throughout the world. The main factor, which is responsible for fixing the price of gold is the transactions taking place the world over for selling and buying gold.
Gold bull market reached its zenith in the years between 1970 to the first half of 1980. This phase is often referred to as the �Great Gold Bull� period of the 1970s. There was a bearish trend in the gold market during the period 1997 to 2001. Reports suggest that as of April 2001, the gold bull market nose-dived to below USD$257/oz.
This was the lowest figure recorded in the 22 years. It has been noticed that gold is availed basically by two categories of people. One includes the Central banks and the other includes the private investors. Studies reveal that as of 2004, about 80% of the gold around the world was controlled by the private investors.
As of early 2007, it was anticipated that gold price could reach USD$850/oz. It was also anticipated that there would be an increasing number of investors who would tend to enhance holdings in commodities as well as in gold.
Reasons for gold remaining in the bull market was that gold was being bought by many investors who used mainly the hedge funds, which explains the inflow of dollars in the economy. It has been observed that in the year 2006, gold attained a high of USD$725/oz. This level was the highest level attained after the year 1980.
However, there were few experts who had predicted a decline in the gold bull market in the year 2007. They also stated that in the event of a decline, the attributable factors would be:
Weakening of the economy in United States of America
Budget deficit of USA
USA’ s trade deficit.