For more than five years, some investors have been predicting
a huge rise in the price of gold. Maybe they’ll finally be right in the second
half of 2013. Just maybe.
GGGG, an exchange-traded fund also known as the Pure Gold
Miners ETF, is down in price by 49.62% through yesterday’s market closing.
If you believe in buying low and selling high, and if you are
among investors who believe we will begin to experience rising inflation in the
second half of 2013, you’re probably interested in grossly oversold gold-mining
DTFs, starting with GGGG but including GG, GDX, GDXJ, and GLD.
You might be interested in oversold silver stocks, too. If so,
visit SILJ and SLV.
My
1-year Yahoo chart for GGGG shows a very nice up trend in July and August
2012, followed by a persistent down trend until a few days ago.
My
3-month chart for GGGG suggests the possibility that the ETF is now near the bottom of its
2013 downtrend.
Forecasts
of precious-metals prices vary from one source to another. No surprise there. I like educated
guesses but I tend to dismiss predictions out of hand.
Never
forget this: All investments and savings are gambles on the unknowable future
and thus subject to loss.
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