All That Glitters- Back In a Strong Buy

The gold and precious metal stock timing models are back in the strong buy zone across the three longer-dated models once again. This is largely a function of the decline in the price of commodity gold, falling to about $1,200 per ounce or around the production costs of gold for many gold producers. The model results are presented below.

6-Month Model, -2





1-Year Model, -2.5


2-Year Model, -2.95

If you can take the risk, the models are once again suggesting a long position in the gold and precious metal stocks. Just a note, last week I mentioned that I was looking into modifying the models in an attempt to improve overall performance by missing the large liquidation events, such as the one we are currently undergoing. I tried layering in various data sets including bond yields and sentiment measures. No modification worked as well or with the same efficacy as the original model results. With that, I am sticking with the model as I originally developed it.