Time to Look at Gold?

Before the next clear winner of the presidential election is decided on November 8, investors are still waiting how the markets will react to the news. It is hard to understand where the markets will be positioned in the next few weeks, so many investors find it hard to hedge their positions.

However, in the early stages of Q3 earnings, over 80 S&P companies are reporting total earnings up 3.9% from Q3 of last year. Of those 79% are surpassing EPS estimates while 62% are reporting better-than-expected revenues. Not bad.

Alan Valdes, Floor operations director at Silverbear, says that it is time to take another look at gold.  During all this uncertainty, gold has been building a base around $1,250. He believes  in investing in the physical gold…

“The yellow metal remains up 16% for the year, and the 8% pullback from the high of $1,363 is very common in a long-term bull market. During the 10-year bull run from 2001 to 2011, gold rose 645%, and yet there were 19 corrections of 6% or more during that time.”

Dave Williams of www.strategicgold.com says that gold will hover in that price range until after the November election and the December Fed meeting. He says, “Looking past the short-term considerations, gold remains in a bull market bolstered by sound fundamentals.”

In terms of where to invest in gold….CEO and founder of focusedstocktrader.com, Harris Shapiro, saw gains this year in the gold mining sector. He recommended the Gold Miners 3X ETF (NUGT) at $10.00 (split adjusted) where he took profits in August and believes now is the time to re-enter the sector.

Maybe it is a good time to start adding gold to your portfolio, either through ETFs or physical gold bullion. Since central banks have been adding to their gold reserves, repatriating their holdings from central banks to their vaults back home.

Hmmmmm. What’s up with that?

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