Good day Traders!
We have all been waiting patiently for that big buying opportunity in gold and gold shares. Even though gold shares have been lagging industry sectors such as the DBC (commodities etf) and FXE (Euro dollar etf), I do believe that gold prices will in fact "catch up" and go into correlation with the leaders because of supply and demand principles.
As you can see in the attached chart -- the bottom is the price of gold, see how it is lower during the past cycle compared to DBC top chart and FXE middle chart. This is a classical intermarket divergence setup. Most of the time you would buy the leaders DBC and FXE but in this case Im putting my bets on the lagger, to make a quick move into correlation with the leaders.
If you want even more leverage you can buy into small cap gold mining stocks such as Linux Gold Corporation symbol LNXGF. These could be $1 -2 stocks some day over the next 12 to 24 months as we move back into full swing of the gold share bull market that began back in 2001.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in OTCPK:LNXGF over the next 72 hours.