July 27, 2012

Gold & Mining Stocks Outlook

I’m surprised that gold is not rallying even more considering what’s happening. Gold has now broken out of a channel. There was a very nice trendline and we just broke out of that today. Now that we have broken out of that channel, there is a lot of room to the upside. The next channel for resistance appears to be another $100 higher than current levels for gold.

If gold breaks above the $1,650 level with conviction, then I think we are looking at retest of the all-time highs from late summer of 2011. And nobody is really anticipating that because these gold stocks are priced for a collapse in the price of gold, not a return to the highs. I think, ultimately, we take out the highs and we go a lot higher.

At some point, if I’m right, these gold stocks are going to take off because they have a lot of catching up to do.  - in Business Insider


Related: SPDR Gold Trust ETF (GLD), Newmont Mining (NEM), Barrick Gold (ABX), Goldcorp (GG)


Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

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