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How To Buy Gold Stocks II
Pinnacle Digest writes: According to Stewart Thomson, gold is the world’s greatest asset. And given that gold stocks explore for and produce the world’s greatest asset, that makes them a great asset to own. Just as many gold stock investors are about to throw in the towel, ST comes out with an article that sheds light onto why that may be the dumbest move one could make at a moment like this.
ST points to the 2008 equity crash when investors booked their monstrous losses in the stock market to dump what they had left into treasuries. A T-bond has gone from 142 to 147 since 2008...pathetic. The Dow has risen from 6,500 to 13,000 in that same time period.
ST points to how that same style sell-off from equities to T-bonds in 2008 is occurring in the gold market. Investors have been questioning whether to give up on gold equities and buy the bullion as a ‘growth with safety’ play.
ST states “At the end of the 1970s bull market, investors sold their gold stocks when bullion began falling. Bullion kept falling, but gold stocks soared. I think that even if gold bullion fell to $1300-$1400 now, it's very possible that GDX and GDXJ could rise to new highs, particularly if oil were to fall and the Dow jumped higher.”
Thomson has gone on the record in his latest article to state that he believes gold stocks are bottoming here.
Click here to read entire article.