In yesterday’s Money Morning article on gold stocks I asked the question:
‘What’s the difference between a gold stock investor…and a pigeon?’
I outlined why this could herald a well overdue turnaround in gold stocks.
But gold stocks may have turned already…
The junior gold index, GDXJ, has bounced yet again from a key level. It was up again overnight, and is now up 4% so far this week.
Since I wrote yesterday’s update, I read a great research note from Bullion Vault that increased my excitement level for gold stocks. It points out that gold has gone precisely nowhere for the last 12 months. Every time it has done that in the last ten years, gold has then gained an average of 33% in the following 12 months.
That’s a pretty remarkable observation.
And if this pattern continues, then now is the time to buy gold.
But if you want more than a 33% gain, your best bet is buy gold stocks instead!
I’ve followed four gold stocks in the Diggers and Drillers portfolio, and my analysis says they could be on the cusp of making investors some decent gains.
Dr. Alex Cowie
Editor, Money Morning
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