Commodity Trade Mantra

Posts Tagged ‘Gold Miners ETF’

Gold Prices Poised to Leap as Love Trade Overtakes Fear Trade

India has pulled ahead of China. The economic output of India’s top 5 cities is expected to reach the size of 5 middle-income countries today. Mumbai’s massive $245 billion economy, could soon exceed the entire country of Malaysia. This presents a huge opportunity for the Love Trade to expand even more, as rising incomes & economic momentum have been a tailwind for gold demand.

Nothing Can Stop The Runaway Bull Market In Gold - Not Even The Fed

The next Federal Reserve rate hike is on hold… for now. The last time the Fed raised rates was from 2004 to 2006. Rates went from 1% all the way to 5.25%. If gold was truly affected by the Fed raising interest rates, then it would have had a devastating effect on the gold price… right? But in-fact gold prices went up. Gold doesn’t care about the Fed, especially when gold is in a bull market.

Did You "Miss the Boat" on Gold? Now Buy the Dip

You may be wondering if you “missed the boat” on gold out of fear of more bearishness. After all, the price of gold is already up 15% this year. It’s at its highest level in 15 months. During the 2000–2003 bull market, the average gold stock rose 602%. The best stocks returned 1,000% or more. So, if you’ve been wanting to buy gold & gold stocks; It’s not too late. Buy the dip.

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 Stocks Too Far Too Fast? Near Term - Overbought, Long Term - Just Begun

Anyone could easily make the case that gold stocks are positioned for a collapse in light of their extremely-overbought technicals. Over the long run, gold stocks remain radically undervalued relative to prevailing gold prices today, so their mean reversions higher have a long ways to go. Severe overboughtness following major secular lows is actually a confirmation a new bull should run for years.

The Surprising Force Behind The Rally In Gold Prices - Can It Continue?

After a few years of losses, gold prices have risen 17% year-to-date as of April 25, making it one of the best-performing investments this year. Perhaps more remarkably, gold mining stocks are up nearly 78% during the same period. The question now is: can the rally continue? Let’s take a look at the catalysts for the rally in gold prices.

Gold Stocks Are Screaming Buy Right Now

Gold stocks offer leverage to the price of gold. A 10% jump in the price of gold can cause gold stocks to surge 20%…30%…or even 50%. GDX, which tracks large gold stocks, is already up 48% this year. And we think this rally is just getting started. Opportunities like this don’t come around often. Once gold stocks take off, we probably won’t get another chance this good for at least five years.

Stop The Panic Selling In Gold Mining Stocks

Why did gold mining shares crash at the end of 2015? Fear. The selling in gold mining stocks was driven by pure emotion — in other words, panic selling. People watched gold prices tumble, panicked and unloaded their shares of mining stocks out of fear rather than due to any logic or reason. The bear market in gold mining stocks took these companies to ridiculous levels.

60% Gains in 2 Months & Gold Stocks Are Just Getting Started

We’re not ready to call the bottom in mining stocks yet, but gold stocks are the exception. Gold stocks provide leverage to the price of gold. A 10% jump in the price of gold can cause gold stocks to surge 30%…or more. The price of gold has surged 17% this year, making it the top performing asset of 2016. Gold’s big move has triggered a powerful rally in gold stocks.

Time to Get Back into Gold Stocks? The Answer will Surprise You

Ask yourself – How many times since 2011 you’ve heard: “Now is the time to jump back into gold stocks.” It may be very tempting to get into gold stocks now. After such a big move recently, this could be the beginning of a major bull market. And when there’s a bull market in mining stocks, you can really make a lot of money. But its better to be late than sorry.

Here’s What Happens to Gold When Interest Rates Go Up

Investors are apt to unload gold in anticipation of tightening monetary policies. This negative pressure is sustained until the Fed announces a rate hike, which then eases the negative sentiment towards gold. This explains the subsequent rallies in gold that occurred shortly after the Fed announced the first rate hike in the last four tightening cycles.

The $1200-Cost Fallacy Of The Gold Miners

I certainly didn’t believe that $1200-per-ounce industry cost level was correct. But I couldn’t prove it right away, as the gold miners hadn’t released their second-quarter operating and financial results yet. But since the great majority finally reported Q2’15 in the last couple weeks, now we can dispel that $1200-cost fallacy. Gold miners have no problem weathering sub-$1200 gold.

When Will Gold Stocks Rally? What Matters Is Gold Prices Can't Go Lower

The market is at the “bottom” for gold and other metals. That’s because all-in sustaining costs for the industry now average about $1,100/oz when you include the interest that major gold producers pay on their debt. There absolutely is demand for physical gold, and the price has to be at least what it costs to produce the metal.

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.

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