"After all, if gold tops out and craters with the rest of commodities, in the face of one of the most ruthless bear markets and more importantly, in the face of perhaps the harshest global credit and financial crisis we’ve ever faced, when exactly will it rally?"
If you can make this simplistic statement , there is too much to explain here.
But just simply , add 3 cans of water to a can of concentrated frozen orange juice and then taste it.
Pretty good , right?
Now add 10 more cans of water and taste it.
Not much juice taste anymore , right?
Now apply the same concept to the dollar.
Maybe now you can guess what will e-v-e-n-t-u-a-l-l-y happen?
Gold Bulls Should Stay Away from Gold Stocks [View article]
It represents what is probably the best indicator that it is time to -
BUY GOLD STOCKS!
With the stocks beaten down and , historically to gold , cheap ,
It is not surprising that gold stock epitaph's will be written.
And that is usually just about when (Hallelulljah!!) - they rise .
Of course , this does not mean to blindly buy anything -
As is always the case , the greater return potential is fraught with the greater risk of choosing the correct ones.
Some have , just since the recent bottom , acheived greater returns than the gold has in its entire bull run !
But IMO , the real answer is just so very simple -
It's the same as it always is -
If you want to play a sector - ANY sector -
You must diversify within it -
That means some gold and silver, diversified in various forms , and some gold and silver stocks , carefully chosen .
Who can disagree with this overall theory!
Gold Index Rallies for 65% Gain [View article]
If you can make this simplistic statement , there is too much to explain here.
But just simply , add 3 cans of water to a can of concentrated frozen orange juice and then taste it.
Pretty good , right?
Now add 10 more cans of water and taste it.
Not much juice taste anymore , right?
Now apply the same concept to the dollar.
Maybe now you can guess what will e-v-e-n-t-u-a-l-l-y happen?