Buy Time: Gold Now Back In Favor

Gold continues to look good.

And gold stocks are starting to believe a new rally is here.

I said a few weeks ago in these pages that I was buying Kinross at $6. Kinross has moved to $6.50 very quickly.

We've seen good earnings come out of Kirkland Lake (NYSE: KL), and we've seen some of the bigger gold mining stocks start to move.

The gold stocks seem to think that this rotation is real.

The larger markets — the bond yields and the dollar — are taking their time, figuring it out. This rotation isn’t all happening at once.

The repo market went back over a trillion dollars last week, indicating that Big Banks want to park cash with the Fed. They do that when they’re scared.

Indeed, since the US 2-Year Bond Yield started moving higher compared to the 10-year last month, banks have been in a bit of freakout mode.

Financials have been the second-worst performing stock sector over the past three months.

It’s further evidence that the current market cycle is turning.

And it’s turning in favor of gold.

Call it like you see it, 

Nick Hodge
Publisher, Resource Stock Digest
 

Nick Hodge is the co-owner and publisher of Resource Stock Digest. He's also the founder and editor of Foundational Profits, Family Office Advantage, and Hodge Family Office . He specializes in private placements and speculations in early stage ventures, and has raised tens of millions of dollars of investment capital for resource, energy, cannabis, and medical technology companies. Co-author of two best-selling investment books, including Energy for Dummies, his insights have been shared on news programs and in magazines and newspapers around the world.

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