Hello traders,
Gold futures confirmed the break-out not too long ago with a strong impulse move up-wards and spot prices are following concurrently. While slight pullbacks in our current upwards channel is possible, all pullbacks are buying opportunities at this stage. The strength in Gold can be further confirmed by new fresh record highs in other currencies such as EURO and CAD.
Gold will continue to hold its tremendous strength as long as equities do not sharply sell-off resulting in Gold liquidation. In the near-term I view equities (as a broader market) already hitting the bottom. While thats not to say that the markets won't trend lower in a few months, if the broader equity market has indeed hit a temporary bottom, this will prevent Gold liquidation and support higher prices. If or when equities eventually correct sharply, it would likely not coincide until future prices get closer to 1900, in which we could see a sharper pull-back to perhaps the mid 1600s on futures or the upper 1500s in spot prices. However, this timing remains speculative as of now.
Silver will tag along with Gold, however, it is likely Silver will take longer to take-off as Silver shines out of a recession (not during) - it is an industrial-use metal rather than primarily a fiat currency/inflationary hedge like Gold. Silver will surge when economies begin to slowly stabilize (even if they remain weak) which is likely late 2020 but more-so, into, through and beyond the year of 2021.
Helpful Information for Investors
How can you invest in gold bullion on a 1:1 basis: GLD, KILO (CAD), and SOGL and many other ETFs exist. Only hedge if you believe your native currency will out-perform world currencies. Generally, non-hedged is best long-term.
How can you invest in gold bullion on a leveraged basis: UGLD (3:1), and HBU (2:1; $CAD) and a few others exist.
How can you invest in miners on a 1:1 basis: GDXJ (juniors), GDX (seniors), XGD (seniors with some junior exposure; $CAD), ZGD (seniors; $CAD), ZJG (juniors; $CAD), and many other ETFs exist
How can you invest in miners on a leveraged basis: JNUG (juniors; 2:1), NUGT (seniors; 2:1) and HGU (Canadian miners only; 2:1)
What are my favourite stocks? Franco-Nevada, Barrick and Newmont for senior stocks. Kinross and Eldorado for mid-tier/juniors.
What is my Gold exposure that I am actually holding right now? Franco-Nevada, Barrick, Newmont and Gold Bullion ETFs.
- zSplit
Gold futures confirmed the break-out not too long ago with a strong impulse move up-wards and spot prices are following concurrently. While slight pullbacks in our current upwards channel is possible, all pullbacks are buying opportunities at this stage. The strength in Gold can be further confirmed by new fresh record highs in other currencies such as EURO and CAD.
Gold will continue to hold its tremendous strength as long as equities do not sharply sell-off resulting in Gold liquidation. In the near-term I view equities (as a broader market) already hitting the bottom. While thats not to say that the markets won't trend lower in a few months, if the broader equity market has indeed hit a temporary bottom, this will prevent Gold liquidation and support higher prices. If or when equities eventually correct sharply, it would likely not coincide until future prices get closer to 1900, in which we could see a sharper pull-back to perhaps the mid 1600s on futures or the upper 1500s in spot prices. However, this timing remains speculative as of now.
Silver will tag along with Gold, however, it is likely Silver will take longer to take-off as Silver shines out of a recession (not during) - it is an industrial-use metal rather than primarily a fiat currency/inflationary hedge like Gold. Silver will surge when economies begin to slowly stabilize (even if they remain weak) which is likely late 2020 but more-so, into, through and beyond the year of 2021.
Helpful Information for Investors
How can you invest in gold bullion on a 1:1 basis: GLD, KILO (CAD), and SOGL and many other ETFs exist. Only hedge if you believe your native currency will out-perform world currencies. Generally, non-hedged is best long-term.
How can you invest in gold bullion on a leveraged basis: UGLD (3:1), and HBU (2:1; $CAD) and a few others exist.
How can you invest in miners on a 1:1 basis: GDXJ (juniors), GDX (seniors), XGD (seniors with some junior exposure; $CAD), ZGD (seniors; $CAD), ZJG (juniors; $CAD), and many other ETFs exist
How can you invest in miners on a leveraged basis: JNUG (juniors; 2:1), NUGT (seniors; 2:1) and HGU (Canadian miners only; 2:1)
What are my favourite stocks? Franco-Nevada, Barrick and Newmont for senior stocks. Kinross and Eldorado for mid-tier/juniors.
What is my Gold exposure that I am actually holding right now? Franco-Nevada, Barrick, Newmont and Gold Bullion ETFs.
- zSplit