Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Gold Bull

What it is:

A gold bull is someone who believes the price of gold will go up. 

How it works (Example):

Gold bulls generally consider gold a "safe" hedge against inflation and even against volatile markets. Throughout history, gold has traditionally risen in value when things such as wars, the Great Depression, or high inflation have occurred. For example, from 1970 to 1975, the price of gold rose 375% as the Consumer Price Index (CPI) posted double-digit increases.  When Standard & Poor's downgraded U.S. Treasury debt in 2011, gold also reached record highs in response.

Why it Matters:

Though gold no longer backs U.S. currency, it is still widely regarded as a standard of value and thus often considered a relatively safe place to invest in times of uncertainty. It is important to note, however, that gold prices can be volatile as well, leading some analysts to question the psychological hold gold has over certain investors.

Related Terms View All
  • Auction Market
    Though most of the trading is done via computer, auction markets can also be operated via...
  • Best Execution
    Let's assume you place an order to buy 100 shares of Company XYZ stock. The current quote...
  • Book-Entry Savings Bond
    Savings bonds are bonds issued by the U.S. government at face values ranging from $50 to...
  • Break-Even Point
    The basic idea behind break-even point is to calculate the point at which revenues begin...
  • Calendar Year
    If Company XYZ starts its fiscal year on January 1 and ends its fiscal year on December...