Commodity Trade Mantra

Posts Tagged ‘Gold Mining Stocks’

Sticky Price Inflation at Highest Level since 2009 - What it Means for Gold

The common man has little idea of what the price of gold is because he does not fear inflation. Right now, gold is only an investment hedge for institutional players & still trending up since December. If inflation starts to become obvious though & the sticky CPI suggests that this might soon happen, any upside revaluation in the price of gold is likely to be quick & intense.

Supplies of Physical Gold are Tight - A Super Spike in Gold Prices is Coming

The key to seeing a gold-buying panic in advance is to follow the flows of physical gold. Once the price of physical gold starts to move up on basic supply & demand, there are increases in paper gold prices. As soon as demand begins to overwhelm supply, then it’s “game on” for significantly higher physical gold prices followed by the toppling of the inverted pyramid of paper gold contracts.

Does the Current Gold Price Justify the Big Gains in Gold Stocks?

Despite the 25% decline in the gold price since 2013 to $1,050, profit margins only fell by 12% as the industry responded by cutting costs and restructuring their operations. With gold now trading at $1,350 per ounce and AISC holding steady, net profit margins for the industry have increased from $220 to over $500 per ounce – an increase of 127% in just 7 months.

Gold is in a Major Bull Market: Simple. Nothing Else Matters

If gold, currently at $1,320 an ounce, can meander around here for a while, that would be constructive. It might even need to fall a bit – perhaps as low as the $1,250s or $1,260s. Such action, if it occurs, could actually be positive in the grander scheme of things. Gold prices could just also keep on pushing higher. It’s a bull market & that’s what bull markets do sometimes, particularly golden ones.

The Rally in Gold Prices is Just Getting Started

It’s been a stellar six months for gold investors. The yellow metal has surged 28% year-to-date, its best first half of the year since 1974. And now there are signs that the rally is just getting started. About $10 trillion worth of global government debt now carry historically low or negative yields are contributing to gold’s attractiveness right now & pushing it up on a new bull run.

Progress of Gold and Silver Against Dollar Building Momentum

The regular negative, mainstream coverage that gold and silver receive is lessening. When larger thematic elements of mainstream media coverage become less obvious or even falter, one can take that as a sign of a change in direction. Media coverage seems to be signalling this shift in sentiment. If it’s a trend, it will reinforce the progress of both gold and silver against the dollar.

Get in on the Ground Floor of a New Bull Market in Gold

After a long, downward slide, gold prices have finally begun to climb higher. Right now is the perfect time to get back into gold and silver investments. And we have four recommendations to get you in on the ground floor. But does the price upswing of the past few months mean that we’re in for a new, longer-term era of strength in gold? Yes. Here’s why.

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.

Investors and Money Managers are All Moving to Gold

Investors have increasingly started processing the fact that the world’s central bankers are completely focused on debasing their currencies. Investors have also endured a five-year gold bear market. Every rally up until this year died out, eventually ending in new lows for gold. But things certainly have changed over the past five months & gold’s up over 20% year-to-date.

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 Investment Demand Will Drive Gold Stocks Higher

Gold stocks still remain greatly undervalued relative to prevailing gold prices. Despite its doubling in less than 3 months, this red-hot sector still has another easy doubling left to come. Analysis here proves gold stocks are due to more than double again. Gold investment demand will continue growing as the Fed-levitated stock markets roll over, driving gold stocks higher.

Surging Mining Stocks Indicate a Big Move Ahead in Gold and Silver Prices

Gold and silver mining stocks often serve as a leading indicator for precious metals prices. During favorable up cycles for gold / silver mining equities, they can potentially deliver outsized gains compared to the physical metal itself. But it would be a huge mistake for investors to treat mining, streaming & exploration companies as if they were proxies for the metals themselves.

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.

The Gold Market is about to Explode. Stop it if You Can!

This century experienced a big change in the gold market. The gold market is about to explode & even the almighty central banks can’t stop this. Before 2008 global central banks were net sellers of gold. Their policy was to keep the gold prices from moving up higher. When you understand gold is like Dr. Evil to paper currency, you know turning from net sellers to net buyers is a big deal.

The Real Reasons Why You Should Buy Gold

Sure, gold yields nothing. It doesn’t pay dividends or interest. But, that’s not why you should consider buying it. You shouldn’t buy it simply because you expect the price to move higher. There’s nothing wrong with betting on the direction of gold prices. One buys physical gold to preserve the purchasing power of the wealth they’ve created & maintain a truly diversified portfolio.

Gold And Gold Stocks - A Meaningful Reversal?

Usually major turning points are first signalled by strength in gold stocks and only later confirmed by a rising gold price. However, given the strange correlation between gold stocks and base metal mining stocks which has developed in recent years, one should perhaps not be too fixated on the indexes, especially as there are large disparities within the sector.

The Best Way to Prepare for a Gold Bull Market

Gold mining stocks are leveraged to the price of gold. A small jump in gold prices can cause large gold stocks to jump two or three times higher. And smaller, riskier gold mining stocks can skyrocket. It’s not uncommon for the best “junior” miners to soar 10, 20, or 30 times more than physical gold during a gold bull market.

How a Gold Investment Could Make You Millions During a Financial Crisis

Gold is the ultimate form of wealth insurance. I buy it & hope to never have to use it. It’s a vital part of my overall wealth plan. You don’t have to buy a huge amount of gold to have a good insurance policy. But the larger your gold-insurance policy, the better you would do in a financial-disaster scenario. The Right Time to Buy Insurance Is When It’s Dirt-Cheap.

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