If you want to get into an asset in a bull market instead, take a look at gold. Since bottoming in late 2015, gold has been in a bull market. It’s just that most people haven’t noticed. Early bull markets are tough to identify, in the same way that early bear markets are tough to identify.
Aussie gold stocks have outperformed strongly during the market’s recent convulsions. They are a great hedge in times of increasing economic uncertainty like we’re in now. The bull market conditions are set to continue for gold. The Aussie dollar gold price is approaching $1,750 an ounce, the highest price since mid-2016 and enough to fatten most well run gold miners’ margins.
Newcrest Mining Ltd [ASX:NCM] has increased slightly by 1.44%, this morning. They sit on a market cap of $15.071 billion, while trading at $19.66 a share. Newcrest mining was founded in 1966. They sell a variety of copper and gold while specialising in mining development and exploration. Why the increase? Find out...
While the US dollar index broke down through support in January this year, Gold did not follow. It still had a bit more work to do. In my view, gold’s move higher is just a matter of time. Many gold stocks have already performed strongly. If you want to profit from this potential move, you need to position yourself now.
While there is a lot of uncertainty around markets right now, a good strategy is to go for relative value. Right now, gold reflects good relative value. That is, relative to other asset classes, gold looks the least risky in terms of valuation. There are reasons to believe that gold is readying for a major breakout. If that happens, the price will move higher, very quickly.
Given the headwinds facing gold, it’s held up surprisingly well. The bitcoin phenomenon, bullish equity markets, a strong economy and rising interest rates are all traditionally negative for gold. Gold has had a pretty good year, considering. It’s trending higher and I think there is a good chance of it taking another leg up sooner rather than later.
Australian gold miner shares fell after the US Federal Reserve´s meeting yesterday. As predicted, the Fed kept the interest rates on hold at 1%–1.25%.
If gold price breaks through US$1,370 it could indicate the start of a new long term uptrend. And this is why it’s rising. The real story behind gold’s rise — and the biggest financial story you’ve never heard of this year — is the declining US dollar.
I’ve been doing a lot of work on the sector for the past few months. As a contrarian investment idea, oil is intriguing right now. It’s off the radar of most investors, yet it’s more in demand than ever before.
We don’t take this revolution lightly. We think it’s the most significant disruption to global finance there has ever been.