Buy Gold Stocks Now?
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Checkout Commodity Trading Research Articles for FREE! http://www.commoditytradingresearch.com Gold miners have been trounced the past few weeks. Is it finally time to buy gold stocks?
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Buy Gold Stocks Now?
- 2. Welcome to Commodity Trading Research Your premier site for fundamental and technical analysis for profitable Commodity Trading. For more info on Commodity Trading Research visit our website www.CommodityTradingResearch.com
- 3. Hi, My name is Justin and I‘m with Commodity Trading Research, today were reviewing our recently published article…
- 4. Buy Gold Stocks Now?
- 5. Dumpster Diving: Is It Time To Buy Gold Stocks?
- 6. Over the past year I’ve heard plenty of theories from mining stock analysts as to why investors should load up on gold stocks. “… they’re cheap…”
- 7. “…the industry as a whole is under valued…” “…mining stocks are drastically oversold from a long-term technical standpoint…”
- 8. But just when you thought gold mining stocks couldn’t go any lower, they did just that.
- 9. Over the past few weeks the mining space succumbed to a viscous downturn. In fact, the Market Vectors Gold Miners ETF$GDX, a great representation of overall gold stock performance, has declined 23% over the past month.
- 10. No doubt about it, gold mining stocks are getting crushed. Take a look…
- 12. As you can see, investors have been dumping$GDX without hesitation. Once multi-month technical support in the $19 area gave way, there was no stopping the ensuing downturn.
- 13. But with this gold mining ETF down 30% since mid-May, is it finally time to buy gold stocks? Only if you’re quick. Let me explain…
- 14. You see, despite trading at it cheapest price in nearly 7 years, $GDXis likely heading even lower over the next few months. Why? For starters, the price of thecommodity gold miners produce is falling off a cliff.
- 15. With gold breaking below important long- term technical support the past few weeks, the door is now open for additional losses. In fact, I wouldn’t be one bit surprised to see the yellow metal trading at $1,000 an ounce before this year is done.
- 16. Here’s a gold chart…
- 18. Clearly, the tide has turned sharply in favor of gold market bears in recent weeks. The metal is down 6.75% in the past month, which puts it16% lower over the past year.
- 19. But here’s the deal… I wouldn’t be surprised to see a snap back rally for gold and gold miners in coming days. Since these markets are drastically oversold from a short-term technical standpoint, the odds favor some degree of relief rally.
- 20. How do you capitalize on this situation? If you’re quick, you may be able to catch a few points on the looming upturn. You could not only buy the aforementioned $GDX, but you can also catch some upside with the ETFs listed here.
- 21. However,don’t fall in love with your long positions… Once gold and gold minerswork off their current oversold condition, bears will likely send these markets to new yearly lows.
- 22. Keep in mind, there’s a very important Federal Reserve meeting tomorrow. The highly anticipated eventshould give investors a better idea of when interest rates will start creeping higher. As it sits now, the analyst consensus is for a September rate hike.
- 23. Of course, rising interest rates is bad news for gold, which offers no yield. Trade accordingly.
- 24. Want More from Commodity Trading Research.com? Follow us on Social Media
- 25. Want more FREE information on Commodity Trading? Commodity Trading Research.com Get Your FREE Report Now
- 26. The 3 BEST Commodity Stocks for 2015 Trading Success! CLICK HERE READ THIS FREE REPORT!