Chris Vermeulen is a trader and newsletter writer specializing in the price of gold mining stocks, gold ETF, oil stocks, oil etf, silver stocks, Junior Mining and Energy Stocks listed in the US, Canada and Australia. Please visit my website for more information.
www.TheGoldAndOilGuy.com
gold mining companies - With the Stock Market Panic behind us - for now - we are settling in for a range bound, relatively calm, second half of ’08. Gold mining companies should finally start to benefit as the wet blanket smothering equity markets lift.
The New York Stock Exchange indicator for new lows reached an extreme of 1304 on Tuesday the 15th of July. That was even worse than the 1100 new lows reached on the 22nd of January. Such extremes spell one thing P-A-N-I-C.
Whilst it’s difficult to infer any far reaching conclusions about one day sell-offs, even panics, the odds now favour a bounce in very oversold equity markets. As for how high and how long the stock market will bounce is anyone’s guess, but here again, probabilities favour the market to move higher and longer than anyone expects so that sentiment indicators return to their old complacent Bullish state!
What will work during this period of ‘relative’ calm?
We had noticed a very definite flight to safety since market volatility began in October ’07.
Firstly, a flight away from common Dow stocks to Gold Mining Stocks because gold is seen as world wide currency which is more secure that worthless paper money. The Dow stocks have slowly been decreasing in value for the past year as gold mining stocks have been increasing in value overall. Gold mining companies is were the smart money is moving into.
Within the Gold market this has manifested itself as a flight to bullion and away from gold mining companies. Yes money had been moving gold stocks higher but the majority of gold investors are buying bullion or the gold bullion etf (actual gold bars) because it currently has lower risk than trading gold mining stocks. So gold bullion and the gold bullion etf's have been out performing the price of gold mining stocks for the past year even thought both Gold and gold stocks have increased in value.
Now that there is a good chance equity markets will stabilize, the above trends will moderate and reverse. This means gold mining companies prices should begin closing the valuation gap and discounting higher earnings based on $900+ Gold.
The remainder of 2008 looks set to be very bullish for Gold mining Stocks and Gold Stock Juniors in particular!
Gold Mining Companies - More commentary and stock picks follow for subscribers…
- Related Videos
- Related Articles
- Ask / Related Q&A
- Another Way of Looking At the Gold Price Meltdown
- The Five Best Ways to Invest in Gold Today
- Gold Etf – the Gold Etf Trading Experience
- Gold ETF Trading For Beginners
- How to Trade the Stock Market Using a Proven Gold Etf Trading Signals
- Dzz Gold Etf – How to Short Gold by Going Long With Gold Etfs
- Gold Stocks or Gold ETF - How to Find the Next Winner?
- Junior Gold Stocks Benefit from Stabilizing Equity Markets
Benefiting from Forex Auto Trading
By: Cedric Welsch | 06/07/2009The automated system allows you to scan as much market as it can. Now you no longer have to go through each and every process all by yourself and make glitches happen along the way.
Top Tips for Successful Investing
By: Adam Singleton | 06/07/2009Thinking of investing? Read up on top investment tips before you make any financial moves.
Ed Seykota Lessons for Commodity Trading & Trend Following
By: Andrew Abraham | 06/07/2009If you have read Market Wizards you would have read about Ed Seykota and his legendary commodity trading & trend following. Ed Seykota started trading commodities at relatively a young age.To put into perspective Seykota's commodity trading results are in the ball park of 60% per annum from 1990 to 2000.
Lucky Few are Buying $1 Million Homes for Just 2%
By: Alwyn Myburgh | 05/07/2009There's a new "secret" that a lucky few have already found that's enabling them to literally buy houses that ordinarily sell for around $1 Million or more - but now for just $1,997 or LESS!
Rent-to-own homes are a viable option for people looking at homes for rent to own
By: Jhoana Cooper | 05/07/2009Buying a home is a dream come true for many people. Rent-to-own homes are a great option for people who don’t have the money to buy homes outright. There are homes for rent to own suiting various budgets that are easy on the pocket. Real estate industry worldwide is going through a tough phase. The sector surely needs more such dynamic ideas to save the property buyers and sellers.
Why Wall Street Invests in China and How You Can Too
By: Ronald Garner | 05/07/2009With the world's fastest growing Internet population, little wonder Western investment bankers are eager to position themselves to partake of an expected bounty. You can too.
The Case for Depression: Credit Destruction
By: Moses Kim | 05/07/2009An explanation of why the current massive contraction of credit means the current downturn is depressionary rather than recessionary.
Dow Nasdaq U.S.Stocks Technical Analysis by Bullet Advisory
By: narendra nainani | 05/07/2009DOW (8280.74) and NASDAQ (1796.52) closed 1.9% and 2.3% down
Gold Mining Stocks Benefit From Stabilizing Equity Markets
By: Chris Vermeulen | 04/08/2008 | FinanceGold Mining Stocks - With the Stock Market Panic behind us - for now - we are settling in for a range bound, relatively calm, second half of '08. Gold Mining Stocks should finally start to benefit as the wet blanket smothering equity markets lift. The New York Stock Exchange indicator...
Gold Mining Companies Benefit From Stabilizing Equity Markets
By: Chris Vermeulen | 22/07/2008 | InvestingGold Mining Companies - With the Stock Market Panic behind us - for now - we are settling in for a range bound, relatively calm, second half of ’08. Gold mining companies should finally start to benefit as the wet blanket smothering equity markets lift.
Gold, Silver and Oil Trading Expert Helps Investors Learn the Ropes
By: Chris Vermeulen | 17/07/2008 | InvestingWhen stocks and real estate are flat, Chris Vermeulen succeeds investing in gold, silver and oil.
Oil Stocks Will Continue to Under Perform the Oil Etf
By: Chris Vermeulen | 17/07/2008 | InvestingOil stocks will under perform crude oil and the oil etf for the next several years - but Energy Juniors will outperform both. The market is now setting up for a great entry point into junior oil Stocks!
Gold Stocks or Gold ETF - How to Find the Next Winner?
By: Chris Vermeulen | 15/07/2008 | FinanceGold Stocks - A contrarian view on where the next Gold Stock winners will emerge. Searching for the Golden Goose? For years we have been speaking and writing about the massive bind the Fed now finds itself in. With price inflation rising - read as food and energy skyrocketing -- and little...