At the dawn of the millennium, the gold market has come to play a dominant role in investment planning. The large-scale trend is slated to continue over the first half of the 21st century.
On the other hand, the path of the gold market will not be smooth or straight. Rather, the metal will behave like other types of assets in the financial forum by following a winding and confounding route.
The financial crisis of 2008, along with the global recession in its wake, shoved the gold mining industry over a cliff. Even so, the companies in the field are regaining their strength thanks to the pickup in demand for natural resources of all kinds as the global recovers its footing.
If history is any guide, the stocks of the large producers of gold - also known in the industry as the majors - will lead the ascent to newfound heights of prosperity. The spearheads will duly be followed by the small fry, otherwise called the minors.
On the whole, the equities of bantam firms will lag those of the heavyweights in the arena. Yet many of the midgets will soar much faster and higher when the time comes for them to flourish.
By the same token, the minors will fall much faster and further each time the upsurge comes to an end. In fact, the majority of the minors - consisting of the current players in the field as well as the hordes yet to be born - will end up going bust.
As a result, legions of heedless investors who plow untold sums of money into the juniors will end up with a drubbing. The bulk of the punters will have little or nothing to show for all their frenzied hustling and wispy dreams of wealth.
More on Trends in Gold: Guidelines and Top Videos for Investment Planning.
