If another financial crisis hits in the months ahead, similar to 2008, the best speculative gold stocks can still outperform.
Gold producers and developers could see some good gains in the weeks ahead, as they are extremely leveraged to the gold price.
The S&P/ASX 200 Banks index is down 13.7% year-to-date. And it’s down 28.4% since March 2015. On the flipside, what has been one of the best performing sectors on the Australian stock market this year?
Today, let’s focus on Greece. Why? Because the country is one — of many — factors affecting the gold price.
The question is, with gold having now pulled back 3.78% from the July high, what’s next? Should you lock in your gains, or have a punt?
Gold — and gold stocks — crashed during the banking and stock market crisis of 2008/09. This time, albeit worse, should be no different.
Many of the world’s smartest investors fear the worst and hate stocks, but love gold. If you ask me, that doesn’t make any sense. Here's why...
Looking forward, Aussie gold stocks could take a decent hit, which would offer a huge buying opportunity in the months ahead.
Despite arguing that gold will crash to US$931 per ounce in the short term, I believe the yellow metal will quadruple in the medium to long term.
Gold has had a terrific run this year. Newcrest Mining Limited [ASX:NCM] is up roughly 80% this year. However, gold stocks such as NCM have been under selling pressure in recent weeks.