There’s clearly plenty of momentum. And gold will probably re-test the 2015 high of US$1,307 per ounce this week. If this happens, Aussie gold stocks should benefit.
St Barbara Ltd [ASX:SBM] share price picked up another 2.35% in today’s trading. Year-to-date, SBM shares have picked up more than 50% in gains, vastly outperforming some of the other stocks in the Aussie stock universe.
Newcrest Mining Limited [ASX:NCM] ended higher for the week after good news dominated the market for the last two days.
Value of contracts traded constant...amount of gold backing those contracts — down 43% in five years. Where’s all the gold going?
Gold has thrived on the ‘wait and see’ approach by central bankers this year. Obviously, economic uncertainty has grown.
At times, gold behaves like a commodity. It tracks the ups and downs of commodity indices. At other times, gold is viewed as a safe haven investment.
Reviewing the G-20 meeting, gold could surge on the ‘uncertainty trade’ this week. But, it may not last.
The US dollar gold price has collapsed for five years straight. So, I wouldn’t back up the truck and buy gold stocks right now.
Buffett loves bear markets because he’s a value investor. He simply values companies based on their future profitability and likelihood to succeed.
Why should gold bugs keep an eye on crude? Because gold’s near-term future will be affected by the continuing slump in oil.