Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
Good Morning, They say we should ignore the noise, but the noise about precious metals (gold, silver, platinum etc) is very loud. Warnings about pending price crashes and, conversely, outrageous price targets that are hard to believe. So, I will ignore the noise and listen to you. I already know that you're bullish, but exactly where and why are these metals stocks going in your opinion? Thank you, as always.
Hi David,
When it comes to reading the financial news remember the writers are generally after “clicks and impressions” and boring news doesn’t attract the attention of people surfing the net, or in the old language bad news sells papers!
Moving onto the ASX gold miners what stocks you’re holding will largely determine how comfortable you are with the sector at this stage of the cycle: e.g. year-to-date – Capricorn Metals (+9.5%), Newmont (+9%), Regis Resources (-3%), Evolution Mining (+4.4%), and Bellevue Gold (-13%), Northern Star (-18%).
MM is bullish towards gold, but we also believe the market experienced a panic style blow off top into January when gold surged over US$1,500 (~40%) in less than 3-months – it could take years for these levels to be revisited – remember the people queuing in Martin Place to buy gold coins & bars!
We believe that when the Iran situation is finally resolved, allowing energy prices to retrace, global central banks will step up their purchase of gold to diversify away from the US$ but rising long term bond yields are likely to cap the gains, at least short term.
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