How To Buy Gold Stocks

Pinnacle Digest writes: Gold stock investors have been losing for several consecutive months now. It’s starting to look a lot like 2008 for these investors, except for the fact that we know the printing presses must be turned back on if an overall crash in the economy is to be avoided. The central bankers around the world have shown what their reaction will be if things turn south for the global economy - always keep that in the back of your mind.

The fundamentals behind gold remain strong and as Stewart Thomson notes, “My main focus now is gold stock accumulation.”

Thomson explains his reasoning behind his strong belief and feels bullion has more downside than the actual miners of the precious metal. Although he is in gold stock accumulation mode, he’s not going all in by any stretch of the imagination. As he stated in the past, one must invest like a pro and that requires one to trade smaller than they know is rational. He advises carrying a short-position in gold during periods of gold stock accumulation.

Thomson reiterates his belief that while you establish a long position in gold stocks, it is important to accumulate a short position through a vehicle like DUST:NYSE in the likely case that more significant pullbacks come before a rise in gold prices.  DUST closed up today by 11.87%.

Gold stocks’ performance has been nothing short of a massive disappointment over the last year considering that gold has remained above $1500 an ounce.  As an example, Barrick Gold currently trades at $35 per share when as little as 12 months ago, it traded at $55.

Click here to read Stewart Thomson’s insightful article on how to buy gold stocks in this treacherous environment.