Everything Gold Is Turning Into Some Serious Green

By

Gold stocks are performing tremendously well right now. The big producers just hit new, all-time record highs on the stock market. Some junior mining companies' share prices are creating outstanding wealth for shareholders. It begs the question, however: what are the best stocks to consider right now as a new investor? You can just tell that the stock market is completely unsure of itself. The price swings up and down are telling. Investors want to be buyers of equities and they have the money to do so. What’s missing is a positive catalyst to keep the trend going for more than a day. The market is trading on economic data that are decent one day and poor the other. It’s one big trading range around 1,200 on the S&P.

Gold stocks are performing tremendously well right now. The big producers like Barrick Gold Corporation (NYSE/ABX) and Newmont Mining Corporation (NYSE/NEM) just hit new, all-time record highs on the stock market. And, it’s not just the big producers that are making money for shareholders; junior mining companies are experiencing tremendous share price appreciation as well.

Small, but growing producers like New Gold Inc. (AMEX/NGD), Richmont Mines Inc. (AMEX/RIC) and Avion Gold Corporation (TSX/AVR) are just a few examples of junior mining companies whose share prices are creating outstanding wealth for shareholders.

It begs the question, however: what are the best stocks to consider right now as a new investor? My answer is almost nothing. Gold stocks are doing exceptionally well and the right ones are making money for shareholders hand over fist. But, I know from experience that it’s difficult for new investors to buy a stock that’s already gone up. If there were a broad-based correction in the spot price of gold and gold shares, then I’d say buy gold stocks across the board. Whether this correction will happen (which I think would be healthy for the long-run price trend in gold) is indeterminable.

The price of gold should continue to be strong for the rest of the year, so buying high and trying to sell higher would be a valid strategy. Currently, I see value in other resource plays, like oil and gas. Speculators wanting a position in gold (or silver) could easily consider an exchange-traded fund (ETF) that mimics the spot price of the underlying commodity. You can even choose from ETFs that have some leverage to precious metal prices.

In the large-cap space, higher-dividend-paying stocks are the most attractive. For equity speculators, it would seem that the resource-related play still holds the most promise. I don’t see a lot of reasons for investors to be making any bold moves in this market. Sentiment is so choppy that the main indices can turn on a dime.

Now is a time for gold investors to be reaping from their exposure to this sector. The trend isn’t over in gold, but it certainly is due for a correction.

Gold: The Stock Contrarian
Investors' Best Play of the Decade!

Here at Profit Confidential, we believe today's depressed gold prices have created an unprecedented opportunity for contrarian investors to buy struggling gold miners at depressed prices. We first recommended investors get into gold when it traded as low as $300 an ounce back in the early 2000s and we rode the rise in gold prices all the way up to $1,900 an ounce in 2011. We believe the decline in gold prices is a correction in an ongoing bull market in the precious metal. And we've discovered what we believe is the best play for contrarian investors to profit from the coming rebound in gold prices.

"Gold: The Stock Contrarian Investors' Best Play of the Decade!" is yours FREE when you opt-in to get our daily e-letter Profit Confidential. With Profit Confidential you are receiving the opinions and commentaries of seasoned financial analysts and economists. We analyze the actions of the stock market, precious metals, interest rates, real estate, and other investments so we can tell you what we believe today's financial news will mean for you tomorrow!

Combined, we have over 100 years' experience in analyzing various investment markets. Our analysts include MBAs, BAs, B.Comms, P.Engs, MAs, LLBs...and most importantly, years of experience investing and managing our own money successfully!

To opt-in to our FREE e-letter Profit Confidential and to get your FREE report, "Gold: The Stock Contrarian Investors' Best Play of the Decade!," enter your e-mail address in the box below. You can unsubscribe at any time.

We hate spam as much as you do. Check out our Privacy Policy.

About the Author | Browse Mitchell Clark's Articles

Mitchell Clark is a senior editor at Lombardi Financial, specializing in large- and micro-cap stocks. He’s the editor of a variety of popular Lombardi Financial newsletters, including Micro-Cap Reporter, Income for Life, Biotech Breakthrough Stock Report, and 100% Letter. Mitchell has been with Lombardi Financial for 17 years. He won the Jack Madden Prize in economic history and is a long-time student of equity markets. Prior to joining Lombardi, Mitchell was a stockbroker for a large investment bank. In the... Read Full Bio »

Related Articles

Video: Here is why you should be Bullish on Gold | By: Michael Lombardi

Poll

Would you vote for Donald Trump if he was the Republican Nominee?

View Results

Loading ... Loading ...
Profit Confidential
×
54.91.93.213
From: Michael Lombardi, MBA
Subject: Gold: The Stock Contrarian Investors’ Best Play of the Decade

Read this message