posted on Apr, 8 2011 @ 10:52 PM
The January correction we went through in gold stocks simply pushed back the date the breakout was likely to occur — instead of breaking in February
or March, which normally occurs when there’s no January pullback, we are now seeing the break in April and May.
This is very similar to 2010, when we didn’t see a top in gold stocks until May, and gold didn’t peak until June.
Meanwhile, the dollar remains under pressure, which is a positive sign for gold. The European Central Bank recently raised its benchmark rate 25 basis
points, from 1 to 1.25 percent. However, the Federal Reserve is nowhere near raising U.S. rates, and is actually still in the midst of its loosening
policy of quantitative easing, referred to as QE2 in the media.
So, for Gold and Gold Stocks it’s good news as we watch gold and mining stocks break out. Let’s enjoy the ride!
These stocks in the Gold Stock Adviser Conservative Portfolio are near or under my recommended buy price: Kinross Gold (KGC), Yamana Gold (AUY), and
San Gold (SGRCF.PK).
In the Aggressive Portfolio, Full Metal Minerals (FMM.V), Kiska Metals Corp. (KSK.V), Golden Phoenix (GPXM.OB), and Western Pacific Resources
(WRPSF.PK) are in range.