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Two Bull Markets in Gold

SINCE THE END of World War II, there have been two great bull markets in gold—the second of which remains ongoing today, with much stronger gains ahead. Separating the two was a long stretch of years in which gold was a dud. And within each gold bull market were stretches of time when gold fell for a while before heading back up. All these periods, bull and bear alike, offer lessons about investing in gold.

Lesson number 1 is gold’s connection to commodities. More specifically, commodity scarcities. More specifically still, the possibility of commodity scarcities that could persist over the long term. Scarcities or the threat of scarcities in essential resources such as oil, copper, zinc, silver, and others go hand ...

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