It is said that markets have four phases: Fear, Skepticism, Optimism, and Euphoria. Sometimes these are given different names depending on who is talking, but the general principles seem to prove true with every passing market cycle. And there have been a lot of them!
Whether it’s gold news or any other sector, it is very helpful to understand these phases. Knowing where we are in the cycle can help you get in near bottoms, and get out near peaks.
According to the common view, trying to time any market exactly usually ends in frustration, when in reality all you have to do is be in the right neighborhood. Our friends in the UK have taken a fresh look at the gold market to see if they can tell where gold sits in the market cycle.