The Gold Stocks and Gold Mining
Where is the Bull Market?
Gold bullion has been on a strong and steady march since its bottom in late 2008 but Gold stocks
have remained mired in a sideways movement as investors become impatient waiting for the sun to
shine...
More
The Gold Stocks and Gold Mining
Where is the Bull Market?
Gold bullion has been on a strong and steady march since its bottom in late 2008 but Gold stocks
have remained mired in a sideways movement as investors become impatient waiting for the sun to
shine upon them.
But to understand why GLD Stocks are moving sideways investors first need to
have a brief history lesson about the industry.
For the 80′s and 90′s Gold was looked at with disdain after Paul Volcker broke the back of
inflation and equities started their great bull market.
With the Gold price trading in a tight range
close to the production price Gold Mining producers were forced to hedge against price declines.
With profit margins tight, hedging was the smart strategy as it gave downside protection to the
mining companies.
Exploration projects were difficult to fund and companies instead focused on
increasing production and efficiency at current mines.
When the Gold bull market started gold producers continued to be w
Less
