The final stage of the commodity bull market

Update 10/13:

gold vs S&P500

gold - 5 years

The below was written on 9/2/12:

The commodity bull market will end. All bull markets end. And when it does end, it will be replaced by another bull market - probably in stocks.

But before it ends, it will go through a final stage, typically called a blow-off stage.

And these blow-off stages are characterized by massive upward price trends - parabolic moves.

An example below is the gold bull market of 1970-1980:

 

Notice that this bull market was interrupted by a substantial 50% correction between 1974 and 1976.

But then the bull market continued, and in 1979-1980, the price of gold screamed higher in a very pronounced parabolic move.

Gold stocks mirrored this move, skyrocketing in 1979.

My broader point is that we have not yet entered this blow-off stage - and that is the greatest proof that the commodity bull market is still intact.