The last four years is the beginning of a major bull market, a move similar to the 70's when gold moved from $38 to over $800. If you believe in 'buy low, sell high', gold is still low, but climbing.

The last gold bull market lasted eight years (1972 to 1980). This one started in 2001 and so we should have at least three to five years left to run and make all time highs, and a 10-15 year commodity cycle that is only 4 years old. But remember that most commodity bull markets have their most explosive and most dynamic run in the third and fifth stage of Elliot Wave theory. The price of gold getting to $500 and exploding to $740 started off the beginnings of the 3rd stage. To get a better understanding of where we are in the gold bull market cycle, we suggest you understand Elliot wave theory and apply it to the price of gold.

If you understand Elliot wave theory, from May to September 2006 was the period for a typical ABC correction. Gold in May at $740 corrected to $560 in June, which is the A down wave. July and August saw gold go back up to $660 which is considered the B wave. September started the C wave down to about $575. As of the fall in 2006, there could be a little more down side for gold, but once it finishes correcting, we should see it start the 3rd wave up of the 3rd stage which should take gold to new all time highs. Even if gold goes down to $480 an ounce, we are technically still in a bull market. The gold bull market could be over if this resistance point is broken, but we don’t see that happening any more in our lifetime.

June 26 (Bloomberg) -- Gold's rally will resume after September as the dollar declines, said Pierre Lassonde, the president of Newmont Mining Corp., the world's second-largest gold producer. ``Gold is still early in the bull market and what makes it so is basically the U.S. dollar,''