As inflation in China and India accelerates we are seeing a strong trend in the gold price. There is still a lot of opportunity in this market and we will show you some of the best ways to participate, with a potential of 100% + gains over the next year.
First, consider that India and China are the world's 2 largest gold buyers. And although higher prices in gold may curtail gold purchases in the short term, accelerating wage gains and growth in those economies support the long term trend up. (See charts below and compare inflation in those economies with the gold price. The correlation is strong, to say the least.)
The best way to profit from this trend is in gold stocks. Ideally, one should invest in junior growth stocks in late development stage and close to production and those whose resource estimates continue to grow. We also like a few select royalty streaming firms to balance out the portfolio. For those who took our advice in early summer and invested in Great Bear Resources, they would have made over 150%. https://www.onlinefinanceacademy.com/global-macro/follow-the-money
Here are a few more stocks that look like good value and that we consider to have significant upside: Argonaut Gold, McEwen Mining, Premier Gold Mines, Osisko Gold Royalties. Sprott Inc. is also cheap at this time and should be considered. On the more speculative side, here are a few stocks with enormous potential (although a few have made strong moves recently): QMX Gold, Monarch Gold Corp, Balmoral Resources.
* Disclaimer: Some of us at OFA may hold positions in some of these companies.
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