No two bull markets are ever the same, and gold is no exception.
During the last secular gold bull market in the 1970s, gold rose from $35 in 1968 all the way to $200 by late 1974.
Then the unthinkable happened. Between late 1974 and mid-1976, gold prices were cut in half, dropping from about $200 to $100.
At the time, many gold investors sold out in disgust, never to return.
But then a funny thing occurred. Gold prices started to climb again, rising from $100 in mid-1976 all the way to $800 by January 1980.
And anyone who was fortunate enough to own gold at $35 earned better than 20 times their investment in just 12 years.
Twenty-one years later, a new bull market began. Since 2001, gold has consistently performed in what now appears to be a record-setting run.
In fact, since 2001 the average return on gold is now just shy of 18% annually over the last 11 years.
I know of no other major asset that has turned in this kind of performance -- ever. This rise in gold prices is simply unmatched.
This is what a stealth bull market looks like, one that I fully expect will keep powering on.
Now, let's have a look at where gold prices might be headed in 2013...
Gold began the year at $1,600 an ounce. Should we get average returns in this calendar year as well, gold could finish 2012 around $1,880. At those levels, gold prices would begin 2013 just shy of the all-time high set last year, right around the $1,900 mark.
If we assume an average return again next year, then gold could reach $2,200 or better in 2013. In fact, I believe $2,200 gold is quite likely in 2013.
After all, none of the fundamentals supporting gold prices have gone away. Instead, they've only become even more entrenched.
In fact, here are five factors I've identified that will power the gold bull market upwards for several more years to come.
The truth is that signs the yellow metal's bull market will soon end are scarce indeed. Meanwhile, breakeven costs continue to rise among gold producers, meaning the price floor keeps rising.
That's why I expect gold prices to set a new all-time record nominal price in 2013, and to reach the $2,200 level in the process. Smart investors will embrace this trend.
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