New York, NY (PRWEB) June 29, 2012
Mitchell Clark, contributor to Profit Confidential, believes that the spot price of gold is coming to a turning point and is ready to take on a major new trend.
“Gold has been consolidating quite naturally after it hit $1,900 an ounce and its correction, in my view, was quite modest,” says Clark. “Now there’s renewed momentum, with the spot price turning up and gold stocks are moving again.”
In the article “Spot Gold on the Verge of a New Price Trend,” Clark notes that the stock market is actually holding up pretty well.
“There’s been a lot of growth in gold miners over the last couple of years,” reports Clark. “Many of these companies have actually been stockpiling some of their production, waiting to sell those ounces when spot prices are higher.”
Clark notes that this strategy has been more popular with silver producers. “Silver is clearly underpriced in my view” says Clark.
Following a number of gold mining companies on the stock market, Clark sees lots of businesses that are very reasonably valued given their earnings growth.
“It’s very true that gold stocks have a difficult time going higher if the spot price of gold isn’t going up,” says Clark.
Clark notes that we’ve seen it happen several times on the stock market over the last few years: gold stocks got beaten down, only to turn significantly higher with the spot price.
“Everything in capital markets seems to be coming to a head this year and you can bet that there’s going to be a lot of turmoil going into 2013,” argues Clark. “If things start to come apart in the eurozone, global investors will run even faster to the U.S. dollar and gold, to a lesser extent.”
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market... before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.