Gold Stocks - buying the break...

Well if we didn't have differing views and positions there would not be a market! We would have Communism!
My personal opinion is that gold by the end of the year will be around the US$400 mark. Historically, this is still VERY high.
Interday Asian trade gold was around the mid US$560's.
We are down 24% from its highs reached only very short time ago.
 
That is exactly what you want in a gold stock. There is a lot of upside in a stock even if the price of gold keeps dropping.
The latest news:- Some North Korean propaganda agency is talking about firing some primative missile and the price of gold jumps 3% LOL
I'm sorry it just makes me laugh.
I saw the price of oil rallied late last year because, it was reported, a union leader in Nigeria got sick and went to hospital.
>>>>>>>>>>>>>>>>>Speculation<<<<<<<<<<<<<<<<
 
I have been trying to say much the same thing in a gentle manner because I literally DO get hate mail when I call the end of a bubble.
I completely agree with Mr Chan's analysis.
I saw an interesting feature article on the Chinese "middle calss" today.
They do have spending power in China. What are they buying?
Products made by overseas multinationals. Basically they were saying that they want to live like Americans. Should we be surprised?
Gold was not mentioned once!
 
....bought in at 405 cashed out at 560 in feb, thinking it was going to roll over.....still can't believe 730.....cost of production sub 300....the last 24hrs seen gaping and periods without trade...short covering?....usd index about the same as when it supported 430...the only difference oil, perhaps an irrelevance...have bid at the 200 day moving average, but not comfortable.....looks like time to leave it alone....any comments...
 
The rise in price of Gold is nowhere near as pronounced when you price gold in Euros or the Australian Dollar.

"Whatever goes up...must come down. The trick is to know when"

I would just leave gold alone at the moment.
 
I was just reminded of this:-
I saw an interview with Mark Faber last week who said that 'Gold is a finite resource' <<<How does he know exactly how finite it is?
He explained that just because of THIS so called finite resource "fact" Gold will be going up indefinately.
He said
"Sure, there will be fluctuations but in the long term it will go up"
"In the long term we are all dead"<<<<Someone famous said this.
 
The ratio of gold-mining stocks (expressed by either index: XAU, HUI or GDM) to the price of the metal has just broken its downtrend, which is the sign of a bull for both (stocks and metal), imho. At least until the ratio reverses its new uptrend. Would play this market from the long side for now (buying GDX on pullbacks).
 
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