This is true for most commodities as well as gold.  Most commodities have seen huge run ups this decade while the S&P 500 has lost ground.  Investing in the S&P 500 in 2000 would have put you at investment at 1500.  As most of you know, the S&P 500 is now sitting around 1000.  While the index for the stock market has lost 33% gold have more than tripled.  It is not hard to see that gold has been a much better investment during the 2000s.

What is very alluring about investing in gold is the fact that the best gains have yet to come.  If we see a rise at the end of the bull market like we did in the late 70s and early 80s, we could see gold shoot up over 500% more from where it is at.  Imagine gold going from $1000 to $5000 in less than two years.  Well, this is quite possible as a 500% gain is what bulls do to end their might runs.

It looks as if this bull market in gold is not going to get close to ending until at least 2014.  This means we could see at least five more years of gains.  These five years of gains in the gold market could net you a huge amount of money if you play your cards right.  Some people try to time the gold market but that is not the easiest thing to do.  To just buy gold and hold on to it for the time being might be the best investment strategy.

Some of the biggest returns in the future are likely to come from gold and commodities in general.  Investing in gold companies can be a bit risky because you are placing your trust ins a company that could do the wrong things when it comes to mining and selling gold.  I would suggest buying the GLD etf or buying physical gold in the form of coins.  The etf DBP is also a great option.

Author:  Jesse Wojdylo

This weekly chart of gold shows the support and resisitence levels for gold.  With inflation coming, gold is an extremely interesting investment that has the potential to produce huge returns.  Being a firm believer in the gold bull market, I have been invested in gold since 2005 and can say that I will remain invested until the parabolic rise we are likely to see in a few years.  After the subprime mortgage crisis, investing in real estate is no longer profitable for many.  Investing in the stock market has caused many shareholders to lose almost half of their portfolios.  The one investment that has sustained gains through it all is the investment in gold and other commodities.  For more information on strong inflation investments click the hyperlink.