Gold is exhibiting all the classic signs of being in a structural bull market. On fears of inflation in early 2008, it rallied. Then, on fears of deflation in late 2008, it rallied again.
So does gold perform better during inflation or deflation?
In our view, that question is the wrong starting point. On the contrary, the rationale for owning gold, as it once again approaches the $1,000-an-ounce level, is the prospect of mounting monetary disorder. Read the story --> http://www.goldnewswire.net/somehow-in-the-ft-gold-primed-to-be-mania-asset
I followed your link to Gold Newswire, but have to wonder if this outfit is objective about their outlook for gold.
Isn't their sole purpose to tout buying (preferably through them) gold bullion?
I might be wrong - please anyone - correct me if the Gold Newswire has ever recommended selling gold.
Don't get me wrong, I am long and strong gold, but the message of this company seems to be totally self-serving.
If I was a cynic I might think the OP is so highly rated because people on this board like to be told what they already believe.
Company name % Net assets
Barrick Gold Corporation 15.98%
Goldcorp, Inc. 12.21%
Newmont Mining 9.56%
Kinross Gold Corporation 6.32%
Gold Fields Limited ADR 5.53%
Harmony Gold Mining Company Limited ADR 5.30%
Anglogold Ashanti Limited ADR 5.19%
Buenaventura Mining Company Inc. ADR 5.10%
Randgold Resources, Ltd. ADR 4.99%
Lihir Gold Limited ADR 4.32%
Percentage of holdings 74.50%
not all majors (especially the other 25%)
The problem with GDX, is that they only invest in the major's, plus you have to also pay that management fee. The majors have also already made a good run, and also the recently released earnings of KGC, AEM, GG, and NEM, do not look good. But of course, if gold and silver continue to advance...........but the stock prices of the junior mining producer's of gold and silver have lagged greatly the major's.
I trade EGO and IAG, both are under $10 currently. I like EGO more, a mid-tier miner to continue to grow, which released their earnings today and are DEBT FREE going into 2009. Super positive cash flow as well. IAG has earnings to come, I may sell into earnings and wait and see. I am long on EGO, and I have trading shares there also. Good luck to you.
the stockcharts price objectives:
gld up 25%
dgp up 50%
gdx up 50%
put 90% in gdx and trade dgp/dzz:
when gld is near the 25ma, buystop dgp.
when gld is far above the 25ma, buystop dzz.
after you get them, put on a 5% trailing stop.