Gold Mining Stocks Maybe The Best Investment For This Decade!

Jun 12

Gold prices right now are hovering in the vicinity of $1,200 per troy ounce. Some analyst are predicting gold prices to shoot up to $2,500 per ounce in the next six to eight months. Some are even predicting gold prices as high as $8,000 per ounce. Whatever, there is no doubt that gold is in an unprecendented bull market that might last as long as a decade.

Why so much demand for this yellow metal? The most obvious reason is the monetary policies being followed by the big economies right now to ward off recessionary forces by printing more and more money. FED is doing this ECB is doing this and their policies are being followed all over the world by the different central banks. With the increase in the money supply, inflationary demons that have been under control till now will be unleashed.

In times of inflation, money loses it’s value. Holding of cash becomes dangerous. This leads the wealthy class to invest in gold. Gold prices and inflation move in the same direction. So the most obvious reason for the rising yellow metal prices that we are experiencing is the faulty monetary and fiscal policies that are being followed by the government all over the world.

The attempt is to ward of recession. But boom and bust are integral part of any business cycle. By printing more and more money coupled with increased government spending, governments all over the world are stoking demons that will come back to haunt the global economy in the next few years. Investors and sovereign governments are preparing for this eventuality by investing in gold. This is driving the demand and the prices of this yellow metal skyward. Keep this fact in mind that the supply of this precious metal is very limited. So even a slight increase in the demand for this yellow metal can increase the prices many fold.

Recessionary warnings are on the rise. Many analysts are predicting a long and painful recession. This includes Robert Prechter, a world leader in Elliott Wave Analysis. The Gold Bug Index is on the verge of a breakout. What you need to do is search for small gold mining companies and invest in their shares.

These gold mining stocks are on the verge of breaking out. One such gold mining stock is Bellwether Newmont Mining. This stock seems to be on the verge of breaking out. Whatever, do you research and invest in gold mining stocks. This might be the best investment of this decade for you!



Source by Ahmad Hassam

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