Friday, December 21, 2012

All that Glitters- Wait to Purchase Gold/Precious Metal Stocks

I am sticking with my call, and I am waiting it out to buy gold/precious metal stocks. Gold and the gold stock indexes are up marginally today, partially due to, in my opinion, traders positioning themselves for near-term volatility in the equities markets. I also think today's trade represents a technical trade, but I will get into that more in another post.

That stated, the timing models for the latest week came in more-or-less where I thought. The 3-month model currently sits at a -1.90 while both the 1-year and 6-month models sit in or around -1.3. I provide the updated model charts below.

3-Month Model


1-Year Model


6-Month Model


It remains my opinion the price of gold will trade into, at least, the high-end of the trading range between May and July of 2012. Varying scenario analyses suggest to me that the timing models will improve to rates around the -2 point range. This is where I would consider buying gold stocks, all else equal.


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