Why have I yet to read a respectable story in the general media about how good an investment gold bullion and gold stocks are at present?
Because the media only seems to report the negative price action on gold when it happens. that’s something I’ve become convinced about. “Gold down $42 for the week,” was the most common headline I found in the business sections of popular newspapers at the end of the first week of March.
Yes, gold did get a little “beat-up” at the end of February and in early March, as investors, frankly, didn’t know what to own, as they dumped stocks amid a stock selloff (they say) that started in China. But there’s no following this old geezer.
Every time gold contracts in price, the metal forms a stronger base for a price ascent. Just like bear markets, bull markets try to trick investors in the immediate term with price volatility. And, in the case of gold, this bull market has given investors plenty of buying opportunities.
I see a deal when it’s a deal. And, right now, there’s a good “for sale” sign flashing on gold bullion and gold producer shares. In fact, after peaking at the US$690 an ounce level earlier this year, gold could be a bargain at its current price of around US$650 per ounce.
The technical chart for gold bullion, going all the way back to 2001 to 2002 couldn’t look any better. The next magic number to beat will be US$700 per ounce. And when that happens, I believe the top-producing gold stocks will really take off.
As a reader of my Profit Confidential columns, you are undoubtedly aware of my negative stance on the general stock market and the U.S. economy. I write daily about the economic problems that continue to brew in the U.S. As these problems develop into others, and as they are finally exposed, what other investment but gold will worldwide investors turn to?