Gold Stocks

This year will initially see a continuation of the trends established in 2009. I understand that this seems like a bland statement. The stock market reads future trends and outcomes at times and has factored (government sponsored) growth this year. Thanks to the vast overflow and after effect of the stimulus capital flows this will come to pass initially and therefore I consider that the highest probability is that the stock market rally will continue in the first half.

Ted Scott, director, UK Strategy, F&C, says, “The only way that gold can underperform is if the U.S. and other developed economies recover in a conventional way by cutting spending and raising taxes while at the same time embarking on a period of stable economic growth.”

A look at current technicals and sentiment.

Yesterday I interviewed friend and colleague Dave Skarica, of addictedtoprofits.net. We discussed Treasuries, the Sovereign Debt bubble, the US Dollar, Gold and Gold Stocks.

More perspective on Gold stocks. While Gold sits at new all-time highs when priced in U.S. Dollars, major Gold stock indices haven’t made significant new highs yet. In fact, most Gold stock indices have displayed an unusual calm since the spring. Nowhere is this more apparent in the Gold stock indices I follow than in … Continue reading

ETF Trading Gold, Silver, Oil, Natural Gas and the Index December 9th, 2009 Etf trading has made it so easy for traders and investors to get maximum exposure to the entire market without the high fees of mutual funds and manager. There are now etfs covering almost every investment type whether it’s stocks, indexes, sectors, … Continue reading

This past week in gold By Jack Chan at www.simplyprofits.org 12/05/2009 GLD – on buy signal, barely. SLV – on buy signal. Prices testing TL support. GDX – sell signal this week. XGD.TO – sell signal this week. Summary Long term – we are on a major buy signal. Short term – Two out of … Continue reading

Gold Stocks continue to offer value. The Junior Gold stocks are still cheap.

Have Violin Must Fiddle By Neil Charnock goldoz.com.au Interest rates are up again here in Australia as the RBA hikes our prime rate by 0.25% to 3.75%. One bank has already come out with a 0.45% hit on mortgage borrowers of nearly double that figure. The Federal Treasurer stated that the banks have no justification … Continue reading

Mining is a tough business and profits are rarely easy to come by. I learned the concept of the “real” price of Gold from Bob Hoye at Institutional Advisors. This concept ignores the nominal price of Gold (i.e. ignores the currency effect, which is difficult for paperbugs but easy for long term Gold bulls) and focuses on the price of Gold relative to the price of other commodities as a ratio.