Gold Stock Indicator: Now is the Time

On June 24, 2013, the Gold Stock Indicator (GSI) declined below the 2008 low for a brief moment.  Today, June 25, 2013, the GSI is at the 2008 low.

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Any activity in the gold stock arena below the “stage 4 buy” level is uncharted waters for us.  We will continue to post transaction alerts based on our partnership account.  However, successfully navigating to this point without over-committing our resources was the ultimate goal of this exercise.  We hope this effort has been practical and saved our readers money they would have otherwise lost at much higher levels in gold stocks.

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We would not be surprised to see a considerable sell-off in gold stocks in the near-term.  However, based on the GSI since 1983, now is a reasonable time to line up gold and silver stocks that are part of the Philadelphia Gold and Silver Index (found here) or the Amex Gold Bugs Index (found here) for investment opportunities.

One Response to Gold Stock Indicator: Now is the Time

  1. Rupam Gupta

    It may seem as if the low gold price will jump up soon due to its nature but as we have seen in the past Gold is just a more dramatic interpretation of the Dow Jones. According to Market Watch (http://www.marketwatch.com/story/7-ways-to-spot-a-market-top-2013-06-24?link=mw_home_kiosk), it seems as if we have reached the peak and we are soon on our way down. In a scenario like this would it seems more appropriate to wait to make sure the market will continue up before we delve into Gold or is the expected stage 4 buy indicator a more reliable factor to look into?