Commodity Trade Mantra

Posts Tagged ‘Gold BUGS Index’

The Incredible Value of Investing in Gold in a Minefield of Overvalued Assets

After hitting a low around $1,200 in July, the price of gold has since advanced by more than 10% or $140 to $1,340. A confluence of factors has been pushing the price of gold higher over the past few weeks and I believe it is headed for $1,500 by the close of 2017. While a near-term pullback on profit-taking makes sense, I expect it to be short and shallow, before resuming the northbound rise.

Gold Stocks Overcome Dismal Herd Sentiment on Strong Fundamentals

Gold stocks still have easy potential to at least double from here even at low prevailing gold prices. As the overbought stock markets & US dollar inevitably reverse lower this year, gold’s own bull will resume. Higher gold prices will greatly increase the profitability of gold mining & fuel a major new multi-year gold-stock bull. As always the early investors will earn fortunes.

The Carnage in the Gold Sector Could Be Over

The rally in gold and silver has corrected hard which is not all that unusual for any bull market. The price of gold is approximately $200/oz lower than its June peak of $1375/oz. RSI is down to 20.63 which is the lowest it has been for some time. A reading below the ‘30’ level is considered to be oversold, so we can see that gold is extremely oversold and a bounce from here is not impossible.

Investors Return Big Time to Gold Miners Stocks - A Long-Abandoned Sector

Given the extraordinary market events of the first quarter of 2016, it’s an exceedingly important one to understand what’s going on with the gold miners fundamentally. Strong Q1’16 results prove their big gains are fundamentally justified. Investors wanting to multiply their wealth as this young new bull matures should take advantage of any weakness in this volatile sector to deploy capital.

Gold Will Soar by at Least 81% - Ross Beaty

Legendary resource investor Ross Beaty likes gold at today’s prices, down 42% from its all-time high. He says. “I like gold partly because I’m a contrarian & nobody else likes it now, always a great bottom indicator. Also because it’s a kind of refuge in the storm that’s blowing around the world financial markets today with unprecedented moves in currencies, energy prices, etc.”

Why a Strong Dollar is the Mortal Enemy of Gold and Oil

The strong dollar pushed bullion prices down 6% in Sept, historically gold’s strongest month. This move is unusual also because gold has had a monthly standard deviation of ±5.5% based on the last 10 years’ worth of data. Oil’s slump is a little more complicated to explain. In a way, American shale oil has become a victim of its own success.

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