Mining Stocks Strike Gold ⛏
Mining Stocks Strike Gold
Next up, one pure ounce of gold. Starting the bid at fourteen hundred dollars, corona-crash prices, fourteen hundred. Fifteen hundred. Fifteen hundred five. Sixteen hundred, sixteen hundred. Seventeen hundred – the investor at the back, a very popular safe-haven gold is proving to be!
Is that eighteen hundred out there? Yes, eighteen hundred bucks. Any last bids? Going. Going. Bang. Actually, the hammer never drops in markets, so the price of gold could keep rising. It’s been on a tear since markets crashed in March, and momentum continues to gain pace.
The metal has an incredible 9.9 Invstr instrument score for predictability, and 94% of the Invstr community is buying. The move higher is driven by the Federal Reserve’s bond binge (as we predicted!). QE often causes inflation, and hard assets like gold protect investors from inflation.
This is also good news for pick and shovel stocks; diggers and drills at the world’s richest gold deposits are returning to site just as sale prices for their treasures soar. The gains in mining follow deposits that are proven, large amounts of metal per ton of rubble, most of that being high-grade metal, and a lucrative sell-on price for that metal.
If the price of gold rises, that’s to the benefit of all gold miners regardless of case-by-case economics. We can see this in the Market Vectors Junior Gold exchange-traded fund, up 25% this month. Will the gold rush continue, and what’s your favorite way to play it?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.