Is It Time for Gold Stocks Yet?
Gold itself has recently corrected from $1,793 per ounce to $1,620 in the last several weeks. This has spooked the crowd out of gold and put further pressure on the gold mining stocks as well. Should Gold hold the $1,620 area and rebound past $1,691 you will see the gold stocks take off just ahead of that. From these 43-to-46 levels, the GDX ETF will provide very strong returns to investors with iron stomachs.
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We have not yet bought into the gold stock sector, but I assume fairly soon we will be dipping our toes in the water, right near the apex lows.