Gold stocks have had quite a spectacular run over the last 2 weeks. The XAU, for example, has appreciated by about 10% during this time. To many people, this rapid ascent came as a surprise. Two weeks ago, when silver declined about 60 cents in one day, there were many that thought lower prices were in the cards. I usually like to browse investing forums because I usually learn something when I do. One forum I visit often is the Kitco Gold Forum. Browsing this forum is a great way to... Read Full Story
I used to subscribe to a service that would mail me educational DVDs on trading and technical analysis, and, once I was finished watching them, I would mail them back, all for a monthly fee. Most of the DVDs I watched were not very good, but one DVD, by someone named Jake Bernstein, really caught my attention. Since then, I have watched about 6 DVDs from him. In the DVD I first watched, Jake Bernstein talked about stock market sentiment. He explained that his company would phone several... Read Full Story
So, it's been 30 days since I started my blog, and in that time I have posted 43 articles, under four different sections. For the 10 people who have visited my blog, I hope that you have enjoyed them. (I'm just joking, and I fully realize that the first month of starting a blog is always the most difficult. ) Anyway, in the last week, gold stocks have been doing better than I had even imagined. They have broken through all sorts of resistance, despite being uncomfortably overbought. I... Read Full Story
We ended the first part of this two part series with an unanswered question: Why has physical supply dried up now?The answer to that question lies in the two vehicles that have made the gold carry trade possible. This is another issue that I’ve alluded to in prior issues of B&B, but I would again like to briefly explain this notion.Gold Carry TradeThe gold carry trade takes two forms. The first is enacted by the central banks of the world. Essentially the banks use the futures market to pre... Read Full Story
The chart below is of the XAU. The XAU is an index of gold stocks and trades in Philadelphia. Many gold analysts and traders look at the XAU, and make their trading decisions off of it, which is why it is important for us to look at it as well. Chances are that if you hold any gold stock, it will follow this index to at least some degree. No matter how strong the fundamentals are of any mining company, if this index goes down hard, your gold stock will too. In addition, I always prefer to... Read Full Story
