1. Most Discussed
  2. Gainers & Losers

How to profit from the gold boom

  1. xerxes_ph

    9,081 posts.
    Here's how I play it - with a degree of safety (I hope)

    I only invest in gold producers - while explorers may run, the risks, for me, are too high.

    As the number of producers dwindles as result of takevers ( R.I.P: Normnady; Hill 50 & Aurion) institutional money in those stocks will seek another home in producing gold stocks to get their desired weighting in the increasingly important gold index.

    Hence the big moves in stocks like Newcrest and Lihr.

    It also accounts for the huge volumes and price increases in CRS - you can bet that displaced institutional gold funds are finding a home in stocks like CRS.

    Another gold producer that is looking good on the charts is Gympie Gold. It has done quite a lot of consolidating in the $1.00 to $1.15 range and looks like it is getting set for a breakout.

    I have held shares in all of these gold producers (NDY; NCM; AOR; LHG; CRS; GYM) and the rewards have been there.

    I currently only hold AOR CRS and GYM - and will, like the Institutions, be looking for other good gold stocks (producers only) with my eventual AOR proceeds.

    The gold price is, in my view, on the cusp of a major breakout. Look for that all important close above $327.50 - and then fasten your seatbelts.

    Gold may have a bit more work to do before it breaches that level and it would not surprise me if there was quite a strong retracement prior to that critical level being successfully challenged.

    Then again, with world tensions on a razor's edge, it could be sooner rather than later.

    Then we will really be in a "boom boom "gold market which will herald the end of the 20 year bear market and be ongoing for not months, but years.

    Gold must be the place to be.

    Cheers.

DISCLAIMER:
Before making any financial decisions based on what you read, always consult an advisor or expert.

The HotCopper website is operated by Report Card Pty Ltd. Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, you should before acting on the information or advice, consider the appropriateness of the information or advice in relation to your objectives, financial situation or needs. Please be aware that any information posted on this site should not be considered to be financial product advice.

From time to time comments aimed at manipulating other investors may appear on these forums. Posters may post overly optimistic or pessimistic comments on particular stocks, in an attempt to influence other investors. It is not possible for management to moderate all posts so some misleading and inaccurate posts may still appear on these forums. If you do have serious concerns with a post or posts you should report a Terms of Use Violation (TOU) on the link above. Unless specifically stated persons posting on this site are NOT investment advisors and do NOT hold the necessary licence, or have any formal training, to give investment advice.

Top

Thank you for visiting HotCopper

We have detected that you are running ad blocking software.


HotCopper relies on revenue generated from advertisers. Kindly disable your ad blocking software to return to the HotCopper website.

I understand, I have disabled my ad blocker. Let me in!

Need help? Click here for support.