posted on 06-06-2019

Gold Bull

Updated August 9, 2020

What is a Gold Bull?

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

How Does a Gold Bull Work?

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 Does a Gold Bull Matter?

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.