Calling all Gold Bulls, 7 Great Stocks to Consider
For all those gold bulls who think gold is heading to $2,000 and beyond, this post is for you. Gold today hit yet another new high finishing the day at $1,100.80 and continues to show no real signs of slowing down. I can’t help but wonder though, is gold really worth this much?
The fundamental investor will tell you no, but the investor who feels that hyper inflation is just around the corner will most certainly answer yes.
Theories aside, the fact is that gold stocks are on the rise and you have to decide whether or not you want your portfolio involved in the bullish price action. A quick glimpse of the Spider Gold Trust (GLD) offers a good look at the recent price movement.
My point of interest is the channel highlighted in green which has been formed by a series of higher highs made since the beginning of September. The trend is your friend, and until it is broken it can easily be supported.
Benefiting from this trend are all gold etfs and stocks (mining, explorations, production, etc.). Two stocks I personally have been watching include both Randgold Resources (GOLD) and Buenaventura (BVN). Their charts lie below.
While GOLD has been subject to intense and quick price swings while building its horizontal base BVN has experienced more one way action. Between the two I like BVN simply because of its consistency and defined support.
Three other gold stocks to consider include Iamgold (IAG), Northgate Minerals (NXG), and Eldorado Gold (EGO). Investors Business Daily currently ranks IAG as #1 amongst its peers and its 30.8% move in the last five trading sessions affirms this leadership.
And lastly for those investors who want to play the bigger trend there are the gold etfs. The Spider Gold Trust (GLD) which we featured above alongside the Market Vectors Gold Miners (GDX) are the two most popular and widely traded.
Personally I am skeptical of joining in on the gold rush because I believe that the market has topped. While there are a lot of signs that gold will move higher from here, short term I feel that a market downturn will take down gold. Thus, I cannot classify myself as either a gold hater (bearish) nor a gold player (bullish). Perhaps I am a gold mediator (neutral). Yeah, that sounds good.
Hello Blain ,
So what happened to your ‘bearish’ call from a couple of weeks ago?
(CAUTION: The Market Rally is Over )
My shorts were stopped ..just traunced!
Thank you.
Read the last paragraph, should answer your Q! I am simply a mediator and posting picks for the gold bulls to enjoy. I need to change things up a bit since most of my posts have a bearish sentiment engraved in them