Gold Bugs Index HUI Stands To Gain As Bullion Prices Rally
Wednesday, February 13, 2019 at 08:45PM
Gold Prices

Preamble

The precious metal market has experienced great difficulty for the last 6 years or so as gold and silver prices were beaten down. However, they are now moving higher largely due to a stock market that is in a corrective mode and a Federal Reserve that is in dovish mode. Investors in the stock market are looking to rotate into new market sectors and the Fed’s rate hike cycle looks to have come to an end removing support from the US Dollar. As the dollar weakens gold prices improve as they have an inverse relationship.

Our expectation is that the precious metals stocks will become more profitable and therefore more attractive to the investment community and could even become the “Darlings” of market as the media begins to feature them more often and without the distaste that they have for them at the moment.

With this in mind our focus is primarily on the PM stocks as conventional wisdom tells us that they can move in a ratio of 3:1 or better when a rally gains some traction. The possibility of leverage to any given trading opportunity appeals to us as it offers us the chance to maximize the profits on a particular trade.

 

 LINK

 

No rate hikes in the near future should have sent gold higher, but it didnt, gold dropped....

If you would like to know which stocks we are buying and selling please join us atStock Trader our premium investment service.

Subscribe for 12 months with recurring billing - $199

Buy 12 months of subscription time - $199

If you are new to investment in the precious metals sector then you can subscribe of our FREE newsletters regarding gold stockssilver stocks and uranium stocks, just click on the links and enter your email address and we will email you our articles along with other interesting posts.

Please remember to check your spam folder once you have subscribed to ensure that our verification email has not gone astray and you are getting our emails.

 

 

 


 

Winners of the GoldDrivers Stock Picking Competition 2007 

 

 

 Follow us on TWITTER @goldprices

 

 


Article originally appeared on Gold Prices (http://www.gold-prices.biz/).
See website for complete article licensing information.