Buy Gold Stocks Now?
Embed Size (px)
Transcript of Buy Gold Stocks Now?
- 1. Welcome to Commodity Trading Research Your premier site for fundamental and technical analysis for profitable Commodity Trading. For more info on Commodity Trading Research visit our website www.CommodityTradingResearch.com
- 2. Hi, My name is Justin and Im with Commodity Trading Research, today were reviewing our recently published article
- 3. Buy Gold Stocks Now?
- 4. Dumpster Diving: Is It Time To Buy Gold Stocks?
- 5. Over the past year Ive heard plenty of theories from mining stock analysts as to why investors should load up on gold stocks. theyre cheap
- 6. the industry as a whole is under valued mining stocks are drastically oversold from a long-term technical standpoint
- 7. But just when you thought gold mining stocks couldnt go any lower, they did just that.
- 8. Over the past few weeks the mining space succumbed to a viscous downturn. In fact, the Market Vectors Gold Miners ETF$GDX, a great representation of overall gold stock performance, has declined 23% over the past month.
- 9. No doubt about it, gold mining stocks are getting crushed. Take a look
- 10. As you can see, investors have been dumping$GDX without hesitation. Once multi-month technical support in the $19 area gave way, there was no stopping the ensuing downturn.
- 11. But with this gold mining ETF down 30% since mid-May, is it finally time to buy gold stocks? Only if youre quick. Let me explain
- 12. You see, despite trading at it cheapest price in nearly 7 years, $GDXis likely heading even lower over the next few months. Why? For starters, the price of thecommodity gold miners produce is falling off a cliff.
- 13. With gold breaking below important long- term technical support the past few weeks, the door is now open for additional losses. In fact, I wouldnt be one bit surprised to see the yellow metal trading at $1,000 an ounce before this year is done.
- 14. Heres a gold chart
- 15. Clearly, the tide has turned sharply in favor of gold market bears in recent weeks. The metal is down 6.75% in the past month, which puts it16% lower over the past year.
- 16. But heres the deal I wouldnt be surprised to see a snap back rally for gold and gold miners in coming days. Since these markets are drastically oversold from a short-term technical standpoint, the odds favor some degree of relief rally.
- 17. How do you capitalize on this situation? If youre quick, you may be able to catch a few points on the looming upturn. You could not only buy the aforementioned $GDX, but you can also catch some upside with the ETFs listed here.
- 18. However,dont fall in love with your long positions Once gold and gold minerswork off their current oversold condition, bears will likely send these markets to new yearly lows.
- 19. Keep in mind, theres a very important Federal Reserve meeting tomorrow. The highly anticipated eventshould give investors a better idea of when interest rates will start creeping higher. As it sits now, the analyst consensus is for a September rate hike.
- 20. Of course, rising interest rates is bad news for gold, which offers no yield. Trade accordingly.
- 21. Want More from Commodity Trading Research.com? Follow us on Social Media
- 22. Want more FREE information on Commodity Trading? Commodity Trading Research.com Get Your FREE Report Now
- 23. The 3 BEST Commodity Stocks for 2015 Trading Success! CLICK HERE READ THIS FREE REPORT!