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.
Is it any wonder that the price of gold is on the rise? If you’re yet to bolster your portfolio with bullion or gold stocks, don’t worry, it’s not too late.
While gold’s due for a correction, I fear much worse. Contrary to the majority, and despite the recent rally, I expect it to hit US$931 per ounce — a three year forecast — in the months ahead.
Gold. It has been one of the best performing commodities this year. That, and silver. Yet, one analyst doesn’t like gold… not the commodity price, anyway.
It is unlikely that both gold and shares will continue to rise. It is just a question of which one will drop first. When it comes down to it, there are more reasons for gold to blink first.
Gold isn’t money. Gold — like stocks, commodities, property and agriculture — is an asset. It’s merely a store of wealth.