How Gold Miners Can Leverage the Price of Gold

Gazing into their crystal balls in recent days, Wall Street firms interpreted differing futures for gold next year. Morgan Stanley awarded gold the “best commodity for 2013” while Goldman Sachs called the end of the metal’s hot streak.

After seeing 11 consecutive years of positive performance from gold, one needs to be wary of research analysts’ price forecasts, as they have consistently underestimated the shifting dynamics driving the precious metal higher.

Take a look at analysts’ annual predictions of gold prices, which is “a telling picture,” CEO Nick Holland of Gold Fields told the crowd at a mining conference last summer. From 2006 through 2011, Bloomberg’s contributing analysts have forecasted that future gold prices would be lower. “The analysts who keep telling us the gold price is going down have been wrong seven years out of seven. That’s a remarkable track record!” says Holland.

t is worth keeping gold’s DNA of volatility in mind as the day-to-day price of gold naturally fluctuates, of course. This is the case for both gold and gold equities.

The upside to gold stocks is that investors historically have received a 2-to-1 leverage by owning gold equities instead of the commodity. U.S. Global’s Portfolio Manager Brian Hicks reminded The Gold Report readers of this fact during an extensive conversation that he and Portfolio Manager Ralph Aldis had with Brian Sylvester.

We believe that effective management can help miners gain more leverage over the metal for their shareholders. Picture the gold price as a pulley with gold company executives applying force on one side of a rope. The more disciplined and successful the management, the bigger the potential boost in gold equity returns.

Read more: How Gold Miners Can Leverage the Price of Gold

Gold’s Buyable Bounce

Your reasons for owning gold don’t matter to me right now. It could be that you want to protect yourself from the declining dollar. Or perhaps you believe foreign demand will increase prices. Readers of these pages will have plenty of ammo for a bullish gold argument at hand. So, rather than lecture you on why you should have your very own stash of shiny yellow metal Instead, I want to help you buy it for the best possible price.

Even if you’re a long-term investor, it’s important for you to time your gold purchase in order to get the most out of the investment. And right now could well be an excellent buying opportunity…

Shortly after gold started to move higher in September, I told my readers about three new buying opportunities to exploit before gold attempts to make new all-time highs. Despite its recent breakout, gold had simply moved too far, too fast. That’s why I thought you should wait for a better-timed entry, instead of getting caught chasing the price.

Here’s what I wrote in September:

“Gold is running out of gas as it approaches resistance at $1,800. It will probably need to rest or retrace before attacking $1,800…

“If and when a pullback occurs, give gold several days to a couple of weeks to move down and/or sideways. Eventually, the price will tell you where and when support will be.

“Once gold moves higher from its new support level, you will have found your low-risk entry point. If I had to guess right now, I would say you might have an opportunity to buy near $1,725…”

Read more: Gold’s Buyable Bounce?

What Role (if any) will Having Elected an Incumbent Democrat Have on Short-Term Prices of Gold and Silver?

PMBG Announces Expected Outcomes Coming out of the Gates of last Week’s Election 

Several IRA account holders are putting gold into their IRAs as a part of retirement asset diversification, which can even out the value of their portfolio even during a weak period in the stock market. Precious Metal Brokerage Group International (PMBG) presents their insight into how the recent election may or may not affect those who invest in Gold IRAs.

With the presidential election decided, the market responded ahead of, during and after Election Day itself. Gold is expected to continue its rise in 2013, reaching up to the $2,000 mark (conservatively) – or likely higher (per most analyst’s projections). On Oct. 23, Deutsche Bank analysts called for gold to exceed $2,200 an ounce next year. This came in light of the stimulus measures by central banks. (http://beforeitsnews.com/gold-and-precious-metals/2012/11/gold-silver-and-the-us-election-2455194.html)

See Full Press Release Here: http://www.prweb.com/releases/2012/11/prweb10112673.htm

 

 

What role (if any) will electing an incumbent Democrat or a 1st-term Republican have on short-term prices of Gold and Silver?

PMBG announces expected outcomes coming out of the gates of next week’s election!

Several IRA account holders are putting gold into their IRAs as a part of fund diversification, which can even out the value of their portfolio even during a weak period in the stock market. Precious Metal Brokerage Group International (PMBG) presents their insight into how to invest in gold IRAs.

With the presidential election less than one week away, market watchers are estimating what kind of impact a Mitt Romney win would have on the markets, including gold prices. Gold is expected to continue its rise in 2013, reaching up to the $2,000 mark – or higher. On Oct. 23, Deutsche Bank analysts called for gold to exceed $2,200 an ounce next year. This came in light of the stimulus measures by central banks. (http://beforeitsnews.com/gold-and-precious-metals/2012/11/gold-silver-and-the-us-election-2455194.html)

Gold prices generally languish in a year leading up to a U.S. presidential election and silver prices tend to weaken as well. Bad economic news and geopolitical concerns spur investors to buy gold and silver. “For one thing, the incumbent tries to keep the public focused on any positive economic news, and that isn’t good for gold,” says Terry Hanlon, president of Dillon Gage Metals in Dallas, adding that “If the past is any guide, this may be a good time to invest in precious metal coins like U.S. gold and silver American Eagles or Canadian Maple Leafs, looking for them to rise in value after the November election.”

Reed Full Press Release Here: http://www.prweb.com/releases/2012/11/prweb10092674.htm

 

Forex Flash: Buy dips on gold towards a $1775 target – Nomura

FXstreet.com (Barcelona) – Gold has been on a steep downward move in recent weeks, currently approaching the 1,700 handle after fast and furious rises following the QE3 announcement.

According to Nomura Strategists Saeed Amen and Geoffrey Kendrick, “the reduction in short-term spec positions suggests that the recent move lower in gold has been as a related to short-term investors.”

Mr Amen and Mr Kendrick add: “Longer term investors have not been sellers and largely remain bullish as suggests Gold ETF holdings, that remain close to record levels. From a longterm perspective, we remain bullish gold, given the continuation of the globally low rate environment and also because longer-term investors are still bullish.”

On a short-term perspective, Nomura is keen to start buying on dips, “looking towards a $1775 target, in particular, on a further liquidation of short-term specs” Strategists note. “Without a further reduction in short-term specs, there is a risk of a continuation of the short-term unwind” they conclude.

 

Source: Buy dips on gold towards a $1775 target