Gold Stocks have sold off hugely in the last few weeks...
LET 'EM DROP LIKE A STONE....EVEN GIVING BACK ALL THE GAINS FOR THIS YEAR.
Gold recently became a dreaded "no brainer" ...
And Mr Market abhors nothing more than a no brainer!
IT IS ABSOLUTELY ESSENTIAL THAT ALL THE NEWBIES, AND SOME OF THE LONG TIME HOLDERS, BE SCARED OUT OF THE GOLD MARKET...!
And naturually, since so many people are "true believers"...that's kinda hard to do...
Hence the scary plunge in gold shares.... To reverse a no-brainer requires an extra big drop to "convince" people that it's time to get out.
BUT;
As long as gold, the metal, stays strong...in the wake of strong Asian oil demand...and with a structurally weaker dollar, (which is currently oversold)...
GOLD STOCKS REMAIN A GOOD INVESTMENT...
SO, A GREAT BUYING OPPORTUNITY IS GETTING CLOSER WITH EVERY BIG DOWN DAY...
What would change all that...?
A Structurally stronger dollar... But that just ain't in the cards...short term or long term.
And if the FED continues raising rates "too much" ...to say, 7% or 8%, on the ten year bond...
Well, we'll have to take a second look when that happens...but that's simply not the world we live in today...
An 8% bond would put the stocks in a 1970's style doomsday funk...and I doubt the FED wants to go there in an election year...
Or any year for that matter!
