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Gold Price Forecast: It's Time to Buy the Summer Lows
Gold has shown investors that it has no plans to leave the cyclical bull market its enjoyed for more than ten years. Gold continues to show strength and build support in the $1580 to $1610 range. Vin Maru, one of Jeff Berwick's top writers at TDV, believes now is the time to begin accumulating top producers, mid majors and only the best exploration plays. Maru believes the precious metals sector has bottomed out and the downside is very limited from here on out.
Although there doesn’t seem to be an immediate rush back into the sector, now is a great time to be acquiring physical metals, but more importantly producers with growth profiles. Although Maru makes the age old mistake of predicting 'the worst is over' you have to give him credit for taking a stand. He leans on his years of technical savvy, by referencing charts and fundamentals in respect to the gold sector.
He wrote that,
"Support has pretty much held throughout the summer and it’s looking good going into the fall.
You could literally throw a dart and pick anyone of the majors and they will all raise in share price once gold starts rising."
The key words being 'once gold starts rising'. Our team at Pinnacle believes strongly that a more sustained rally in gold and gold equities is right around the corner and we have positioned ourselves accordingly.
Maru went on to suggest slowly picking away at the junior explorers as they are usually the last to rise in price in a normal cyclical move higher in precious metals. In a moment of reflection about the juniors, he asks: Could this time be any different? He answers strongly with, "Absolutely, they have become so cheap that many are trading for cash value and very little value is given to proven reserves."
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