Commodity Trade Mantra

Posts Tagged ‘Gold Equities’

Despite High Global Uncertainty, U.S. Citizens Remain Under Invested in Gold

Gold remains extremely under-owned by investors despite having a solid track record as a currency of last resort in times of uncertainty, and despite the current global environment being arguably more uncertain than any point since the second world war. Gold ETFs as a percentage of all ETF assets are now closer to 2%, despite an increasing risk of inflation and therefore negative real rates.

Gold and Silver Prices in Consolidation mode before another Bout of Rising Higher

Gold has broken strong resistance & bullish pressures are on despite ongoing consolidation. Expected to show continued consolidation before another leg higher. At this time of heightened geopolitical risk, we strongly believe gold could turn out to be an underowned and well-priced insurance policy. Moreover, gold has the potential to perform very well in periods of stock market weakness.

Historically the Best Assurance for Higher Gold Prices - Debt & Inflation

It is our opinion that the situation today best mirrors 1973, when gold prices gained 134% & gold miners rose 205%, rather than 2008. 1973 was spurred by overwhelming debt and inflation. It is no secret that the world’s governments will continue printing money to fund growth & to service debt. History is favoring a similar situation & gold will be the safe haven from inflation & uncertainty.

High Uncertainty Makes This Completely Certain: High Gold Prices

Gold prices tend to fare well when there is a lot of uncertainty around. In today’s environment where you have got a lot of uncertainty, taking a bit of money off the table and putting it into something that will protect you, seems to make sense. Gold is a safe haven asset and in times of trouble it does tend to deliver the kind of insurance qualities that people look to it for.

Gold Investment is now Insurance for Long-Term Protection against Inflation

Inflation just got another jolt, rising as much as 2.5% YoY in Jan. Significant increases in inflation will ultimately increase the price of gold. Investment in gold now is insurance for long-term protection. Major stock indices continued to hit fresh all-time highs & it’s important to temper the exuberance with a little prudence, making gold’s investment case even more attractive.

Gold Equity Market Bull will be as Ferocious as the Bear from 2012 to 2015

Over the past 45 years there have been 7 bull cycles & 7 bear cycles with varying duration & gains. No bear market was as horrific as the one just experienced from Oct 2012 until mid-Dec 2015. Does that mean that the new gold market we are currently in will last longer and provide opportunity for even stronger gains than those experienced in previous bull cycles? Only time will tell.

Gold will Never Let a Good Crisis go Waste & There are Lots of Them Coming

The current geopolitical uncertainty has been years in the making & extends beyond the gyrations in British politics. Negative or low interest rate environments, macro risks & deteriorating confidence towards central banks & monetary policy are the reasons cited for the fresh interest in safe haven gold. IF there’s one thing that can be said for gold, it’s that it never wastes a good crisis.

Gold and Silver Moving Sideways and Consolidating Indicate Another Move Up

Silver never moves lock step with gold. When uncertainty prompts investors to seek out safe havens, they look to gold long before silver, as gold is a more straightforward safe haven. When gold is consolidating its first big move & preparing to take out its next resistance, that is when the safe haven status in silver catches up. Silver’s recent move only confirms the new higher price range for gold.

Gold Prices are Consolidating, Instead of Correcting - Pulling back for a Bigger Leap?

Gold has now spent two full months trading between US$1,210 and US$1,270 per oz. The lowest point of that range still has the yellow metal up 12% compared to the start of the year. Instead of correcting, gold is consolidating. You can think of that as correcting through time rather than price. Doing so proves the move was valid. Gold equities have also held their ground.

How Is Gold Impacted By Runaway Debt?

The world now sits beneath a mountain of debt worth $200 trillion. If gold backed total global debt 100%, it would be valued at $33,900 per ounce. It’s unlikely that gold will ever reach $33,900 per ounce—or even $12,000, as James Turk calculates—but the fact that supply has not kept up with debt levels suggests that gold prices might very well rise.

“Wrestling with Something Else”: Why this Gold Bear Market Is Different

Let’s begin with the gold bear market that began in 2011. What do you believe caused it? Do you think this is cyclical or a secular bear market? I share my thoughts here on how we arrived in the current bear market, what factors might help us get out of it and the role real interest rates play in gold prices.

A Surge in M&As Proves that Gold Is Back

Gold mining majors and midtiers have cut exploration budgets and now rely on the juniors to provide their replacement reserves and resources. That’s why M&A has increased. This tells me the junior miners are really set for a takeoff. Expect a new record gold price within 18 months. Here are some metal equities poised to take off in 2015.

Why ‘New Approach’ to Gold Miners ETF Could Benefit Investors

Traditional gold miners indexes select their holdings in a very simple way: stocks are ‘market-cap weighted. In the mining sector, having the majority of your exposure allocated to the biggest mining companies can be dangerous. Bigger is not always better. Taking a more thoughtful approach to creating an index makes a great deal of sense.

This Gold Sell-off is a Normal Event in this Market

Right now, you are seeing gold being crowded out, because the returns from other assets such as stocks look more attractive. But the way I look at this nearly ‘free’ capital is ultimately good for gold. It weakens the medium of exchange, the US dollar, in which gold is denominated.

The Chinese Gold Vortex

The Chinese Gold Vortex is putting an undeniable pressure on the physical market, while focus on price manipulation makes it progressively harder for price manipulators to operate. The reversal of this anomalous, yet explicable market dysfunction could provide astute investors with multi-hundred per cent returns.

Gold Equities, Manipulators and Significant Earning Potential

According to Eric Sprott, gold stocks are reacting very positively to what seems to be a shift in people’s willingness to commit to the precious metals area. Momentum seemed to pick up a little bit in Jan and in Feb some of that has carried on. Investor sentiment surely seems to have shifted a little.

Some Gold Mining Stocks May Outperform Gold Itself

Gold mining equities have become attractive to investors once more, after spending years out of fashion as respectable investments, given corporate governance problems and ballooning capital budgets. It makes sense to look at assets that were “absolutely punished and massively sold” in the past

Did Central Banks Collude to Suppress the Gold Market?

Central Banks have formulated a Plan – Paired with the Fed’s inexplicable reluctance to return Germany’s Gold, Eric believes that central banks also did what they could to stop citizens in India from obtaining Gold

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