The bear market for gold is long in the tooth…and gold stocks are the most undervalued they have been in decades. The above comments, and those below, have been edited by Lorimer Wilson, editor of munKNEE.com (Your Key to Making Money!) and the FREE Market Intelligence Report newsletter (see sample here ? register here) for the sake of clarity ([ ]) and brevity (?) to provide a fast and easy read. The contents of this post have been excerpted from an article* from VisualCapitalist.com originally entitled It's Time to Pile Back Into Gold Stocks ? and which can be read in its unabridged format HERE. (This paragraph must be included in any article re-posting to avoid copyright infringement.)Below are five charts from Palisade Capital that support said contention: 1. The divergence between the S&P 500 and Bloomberg Commodity Index is at an all-time high. 
2. The bear market in the TSX Venture now stands at 1,090+ days. 
3. Gold stocks have never been this cheap relative to the price of gold.
The Gold BUGS Index (HUI), which tracks the world's largest gold miners, was last this low when gold was only $250/oz. 4. The gold bear market is closing in on being the longest in BGMI history. 
Using the Barron's Gold Mining Index (BGMI), this is already the worst bear market for gold miners. However, in just a couple of months, it will also surpass the 1996-2000 bear market as the longest. 5. The ratio between the gold/silver sector to the S&P 500 is unprecedented. 
When pricing the S&P 500 in terms of the Gold/Silver Sector Index (XAU), it has never been this expensive. Put another way: gold and silver has never been this cheap. *http://www.visualcapitalist.com/its-time-to-pile-back-into-gold-stocks-charts Related Articles from the munKNEE Vault: 1. It's Time To Start Thinking About Buying Gold Mining Stocks ? Here's Why Is this the time to be buying gold mining stocks? Maybe, maybe not, but if you don't own any at all, this is a good time to start thinking about them. Here's why. 2. How to Play the Beaten Down Precious Metals Sector With Less Risk Investors are faced with a serious challenge: how exactly to play the beaten down precious metals sector? If anything, investors must avoid too much risk when putting capital at work so here are 4 rules on how to go about doing so in…a disciplined way. 3. 3 Signs That Gold, Silver & PM Stocks Have Finally Bottomed Gold, silver and precious metals mining stocks are still nowhere near long-term or secular bottoms but I believe they could be approaching short-term tradable bottoms in the coming days or weeks based on the following 3 signals: The post It's Time To Buy Gold & Silver Stocks - Here's Why appeared first on munKNEE dot.com. |
