Some say that gold has been in a bull market and that it must be nearing the end of its bull move.

However, it is only in US dollar terms that gold has been in such a stellar bull market. When looking at gold versus other assets, such as oil, gold was in a bear market from 2001 to 2008 when after the “financial crisis” it began to move dramatically higher.

In fact, this chart of gold versus oil explains many of the other seeming irregularities. One of the reasons gold production hasn’t increased over the last ten years is, compared to other assets, gold has been in a bear market until 2008. This also explains why gold stocks have not outperformed gold bullion during that same period.

(Continued on next post)