Wednesday, March 5, 2014

Gold Stocks & Gold Price

The gold stocks are a reflection of the future price of gold. But not of what the future price of gold actually is going to be because nobody knows that. It is a reflection of what people buying gold stocks believe the future price of gold is going to be. So, there are a lot of people that expect that the price of gold is going to collapse in the future even though it has not collapsed yet. In fact, even though it is rising in 2014, the expectation the rise will not last, that gold is going to roll over and collapse and that expectation of a future collapse of the price of gold is built into the price of gold stocks. But the problem is, the people that are expecting lower gold prices are probably wrong.

Related stocks and ETFs: Newmont Mining (NEM), Barrick Gold (ABX), Goldcorp (GG), Market Vectors Gold Miners ETF (GDX), SPDR Gold Trust ETF (GLD)

Peter Schiff is a well-known commentator appearing regularly on CNBC, TechTicker and FoxNews. He is often referred to as "Doctor Doom" because of his bearish outlook on the economy and the U.S. Dollar in particular. Peter was one of the first from within the professional investment field to call the housing market a bubble. Peter has written a book called "Crash Proof" and a follow-on called "The Little Book of Bull Moves in Bear Markets". He is the President of EuroPacific Capital, which is a brokerage specializing in finding dividend-yielding, value-based foreign stocks.

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