Buy Gold Stocks Now

Gold demand in India is in a basing zone, and I expect the country’s gold market infrastructure to become as good as China’s in just the next three years.

A floor of double digit GDP growth in India is going to create a “bull era” in gold demand growth.  Simply put, it’s the greatest time in history to be an investor in the precious metals asset class.

In any business cycle, growth generally peaks as the cycle peaks. 

The current US business cycle is about eight years old, and growth is quite strong, relatively speaking.  This strength should now begin to create wage inflation, which is good news for gold stock enthusiasts.

To understand why I use the phrase “relatively speaking”: 

 Germany and China have the biggest current account surpluses in the world.  The US has the biggest deficit.

It’s a “no brainer” to see why Europe’s most powerful nation (Germany) is joining forces with China.  A current account surplus “cartel” is essentially being created.  This is going to put enormous pressure on the Trump administration to devalue the dollar against other fiat currencies, and perhaps directly against gold.

While gold is seasonally weak, investors should not let this distract them from the fact that gold is fundamentally and technically in a key buying area now.  It’s poised to see very solid appreciation in the years ahead. 

(Click on image to enlarge)

In a deflationary crisis, gold and silver bullion are the best performers.  Gold stocks tend to look like wet noodles, and silver stocks can look even worse.  As the winds of inflation begin to pick up against a background of possible dollar devaluation, the mining stocks will be the leaders. 

I view the $23 - $18 area for GDX as one of the most important accumulation price zones in the history of markets. Investors who take action here are poised to be rewarded with gains that are not just big, but here to stay!

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Lorimer Wilson 3 years ago Contributor's comment

You are not alone in your view. Here's what Sean Brodrick had to say recently in this article:

>"IF gold breaks support...then you should buy gold and miners with both hands because that will likely mark the beginning of the next Mega Bull trend. The market won’t really turn bullish on gold again, however, until it pushes up through $1300."