gold 2001 to 2008

The rally that followed the 2008 financial crisis generated returns of 132% for gold in under three years. The gold price more than doubled from the low of $681 in October of 2008 to a high around $1,577 in April of 2011.

gold 2008 to 2011

So, while the 20% move higher toward $1,300 has been exciting, gold would still need to climb to somewhere around $3,000 per ounce ($1,050 bottom x 3) to match the gains that gold experienced after bouncing from its prior bottoms.


Silver is holding around the $17 level, up 23% so far in 2016. The rally that followed the 2001 low generated returns of around 433% for silver. It advanced roughly 5.3X from $4 in March of 2001 to over $21 in March of 2008!

silver 2001-2008 gain

The rally that followed the 2008 financial crisis generated returns of roughly 500% for silver in under three years! The silver price went up 6X from the low of $8.40 in October of 2008 to a high of nearly $50 in April of 2011. Could we see another run of this magnitude in the years ahead?

silver 2008 to 2011

If you thought the $3,000 price target for gold was exciting, consider the following. If the current bull move in silver matches these previous up-legs, silver would need to climb towards $75 per ounce ($13.60 bottom x 5.5).


…There are no guarantees that the current bounce from multi-year lows will match those of the past but investors have certainly not missed the train, as we are only in the early innings of this ball game. Investors that remain on the sidelines waiting for a big pullback may never get the opportunity. They might want to consider edging into new positions now and getting some skin the game. They will then have some skin in the game and can add via buying in tranches over the next few months but don’t get paralyzed as a scared spectator waiting for a perfect moment that never arrives.