[06/15] Despite numerous world crisis, gold barely moves. Last week, the European banks decided to hold only 15% of their reserves in Gold, moving it more than $6 down on that news. While the next weeks may be good short term for gold, we recognize it is not popular and won't be until the $US is in crisis. As we have said before, starting in 1999, Gold will begin to shine. In the meantime, we continue to recommend accumulation as very long term technicals charts are turning bullish and investment sentiment is extremely bearish (a contrarian indicator).
In Gold, we currently like Newmont Mining (NEM) and Canyon (CAU).
Two Classic silver stocks are COEUR D ALENE MINES (CDE) and SunShine Mining. (SSC).
01/16 We are long term gold bulls. Whether European Central Bankers succeed in their quest to substantially eliminate Gold from backing their ECU, I believe not only will the XAU approach 100 near term, but that GOLD will rally in 1999 at least to test $400! This next quarter, some technical players will short physical ~$300. Too foolhardy and short sighted for me. We continue to recommend accumulating Gold majors. Gold is super cheap insurance against inflation. Remember: "Buy Low, Sell High." Speculators are buying on signs of growing physical demand for gold and a lack of fresh sales by central banks or gold miners. Enough said.
Excellent Risk/Reward to buying Gold.
GOLD below $300 amazing - XAU 65.85. Silver is moving up and GOLD will follow with an explosive move, deflation or no. Anyway the precious metals sector is a vastly undervalued sector that before 2000 will be more properly valued. See our 1998 report for some suggested intermediate and long term investments
WSNW SUBSCIBER QUESTION:
What is happening re gold? I know you said in July of this year that the next six months would produce higher gold prices, but that has not happened. What is your thinking now?
While adding to losers is DEATH for traders, it can be an acceptable value strategy.
BUY SHORT TERM,
BUY for the INTERMEDIATE TERM and
BUY for the LONG TERM!
To see previous gold buy recommendations, click below:
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