Gold Mining Stocks Outlook and Forecast for year 2015
Gold mining stocks are those securities whose main business is to mine for gold bullion; and are often referred to as “gold mining stocks.” The Dow Jones U.S. Gold Mining Index is a stock market index that is a weighted average of about 100 of the largest and most widely held gold mining stocks trading on major American stock exchanges. When the price of gold bullion is rising, the prices of gold mining stocks are rising. Similarly, when the price of gold bullion is declining, the prices of gold mining stocks are declining.
Left for dead: that’s what appears to be what most investors have done to gold mining stocks. With the price of gold bullion down significantly in 2013, it appears many are simply ignoring all gold mining stocks, lumping them into one category and avoiding the group as a whole. Personally, I love buying when things are on sale. I hate paying full price on anything, no matter if it is for a stock or clothes. When it comes to gold mining stocks, the market sentiment hasn’t been this bearish in years.
Market sentiment tends to oscillate, and for the long-term ... Read More
A friend of mine asked me the other day about the best way to build a long-term investment strategy. This is a great question, but it’s also one of the most difficult ones to answer. Obviously, different people have various goals and objectives, especially when it comes to risks. For me, the way I put together an investment strategy is by looking to buy things when they are on sale, including stocks. Over the past couple of months, if you’ve been following my articles, you’ve likely noticed that I’ve started to become quite bullish on gold mining stocks. This is the classic investment strategy ... Read More
The winter storm that recently tore across the northeastern United States will, no doubt, take the blame for the continuing weak economic news and data that have been coming out of Wall Street. Having been the economic scapegoat since December, there’s no reason to change tactics. But the raft of ongoing disappointing economic news and data suggests there’s more to the nation’s weak economic news than cold weather. After all, it’s not as if the U.S. economy had been red-hot and then suddenly hit a brick wall in December. If there’s one thing t ... Read More
When it comes to gold bullion prices, despite their mere 10% climb since the beginning of 2012, I wouldn’t be at all surprised to see gold bullion prices increase even further. With this, companies producing or looking for the precious metal are still presenting a great buying opportunity. Let me explain… We see demand for gold bullion continues to increase, and at the same time, supply constraints are slowly starting to show. This is something I have been talking about for some time now and at the very core, it is the perfect recipe for higher gold bullion prices ahead. In 2013, we learned that the Indian government and ... Read More
Did gold make a New Year’s resolution? If it happened to set its sights on 2014 being better than 2013, then that might not be too hard to accomplish. For gold bugs, 2013 was abysmal. Gold bullion prices ended the year down about 28%—the biggest annual drop in more than 30 years. Gold bullion prices experienced an unprecedented run-up after the tragic events of September 11, 2001 and soared higher in 2008 as the global economy teetered on the brink of a recession. Investors’ justifiable fears of economic turmoil and inflation sent them running to gold bullion and gold mining stocks to hedge against this economic uncer ... Read More
Gold bullion prices are taking a big hit. The precious metal continues to slide lower, and sits at the lowest level since July; negativity towards it is exuberant. There’s a significant amount of noise that says gold bullion prices will go much lower, and those who are against it can be found saying that it’s not worth the investment—those who are bullish on the precious metal are ridiculed. As I have said before, I continue to be bullish on gold bullion prices going forward. It is certainly difficult to take this stance, but the odds are stacking higher with this notion; time will be the better judge. One of the factors that affect prices is the supply. At the end of the da ... Read More
The one thing that savers and investors have these days is choice. More and more securities come to the marketplace every day and the kinds of investments available to individuals have really improved over the last few years. One of the most useful, more popular investment vehicles nowadays consists of exchange-traded funds, otherwise known as ETFs. An ETF is a security that trades on a stock exchange, but follows a commodity, an index, or a basket of assets (e.g. an index fund). ETFs can be very useful in diversifying your portfolio as well making a bet without using derivatives. Fo ... Read More
We have the fiscal cliff and national debt to contend with, along with jobs, manufacturing growth, and economic renewal. Moreover, there’s a recession in the eurozone that is negatively impacting the global economy, including China, Japan, and the U.S. My view is that stock values could falter in 2013, so you need a safe haven to park your capital, which many of you know is in gold. There has been plenty of talk in these pages regarding gold and whether the precious metal is headed for $2,000 an ounce. In my view, the current global risk will support and drive gold prices higher. For you, the question is whether to buy the physical bullion or gold mining stocks. For the average investor, I favor gold stocks over ... Read More
The case for higher gold bullion prices continues to become stronger each day. As I have been harping on about in these pages, there’s significant evidence that the demand for the yellow metal is increasing and supply is facing hardships.
Let’s look at the demand side of gold bullion first. It is robust, to say the very least.
I have reported here before that we see strong demand for gold bullion from the Far East. The consumers in the two biggest gold bullion-cons ... Read More
I will be the first one to agree that it’s very difficult, if not impossible, to price gold bullion. Unlike stocks or bonds, it doesn’t provide investors with income or necessarily have an interest rate. Sadly, just for this reason, the yellow metal gets a lot of scrutiny. We saw what happened to gold prices not too long ago: they were slammed on the notion that the precious metal doesn’t have any use in a portfolio anymore, and it seemed as if no one knew where the precious metal would find support. Now, a couple of months after the sell-off, the price of gold bullion is up about 20% ... Read More
Between September 2012 and July 2013, gold wasn’t so much on a roller coaster ride as a steep descent, losing almost 35% of its value. During the first half of 2013, it fell almost 30%, hitting an intra-day low on June 28 of $1,179.40. But it’s been a different story since then. Increased demand for physical gold and lower supply have helped the price of gold jump almost 15%, soaring past its 50-day moving average and hitting a two-ish-month high near $1,370 an ounce. Over that same time period, gold ... Read More
Gold has gained a significant amount of attention since the price plunged from trading just below $1,600 an ounce in mid-April to now hovering close to $1,400. It’s very common to hear someone in the financial media say how the yellow metal has no use in their portfolio and, most importantly, that the prices won’t go any higher. Some have even called the price plunge a sign of the bubble bursting. My take on the issue is that while there’s no doubt that the prices have gone down from their highs, investors who are in the world of invest ... Read More
When it comes to investing, it’s important to diversify and spread your money around. Put all your assets in one basket and it could evaporate overnight if the markets go into correction mode. As a result, diversification is a good strategy to follow, because it can protect you from losing your entire retirement portfolio should the markets turn. Having a number of different stocks does not make a portfolio diversified. A diversified portfolio means having different kinds of investments, including stocks, bonds, cash, and so on. While we all know diversifi ... Read More
Gold is in a bear market territory. The price of the shiny yellow metal has fallen almost 30% since the highs it made above $1,900 an ounce in April of 2011. Look at the chart below—it seems gold bullion prices have fallen off a cliff.
Stock chart courtesy of www.StockCharts.comAs there has been a significant decline in gold bullion prices, analysts are projecting many estimates, on both the bear side and the bull side. Some are calling the decline a great b ... Read More