It appears we are moving closer and closer to the rocket launch in gold that will have most people scratching their heads in confusion. After all, isn't gold supposed to collapse in a recovering economy? Isn't gold a bubble? I expect the cries of a bubble in gold to grow louder as we hit record highs. This should be your signal to buy.
Gold has built up a ton of latent momentum that is apparent every time gold bounces off $1,030 dollars. I will personally be backing up the truck when we see a weekly close above $1,060 that holds as support. This will tell me that we are going to test the all-highs in gold.
Of course I'm incredibly bullish about the prospects for gold stocks. The great thing about being invested in gold stocks is that they benefit from the melt up in stocks in general. When the stock market was correcting in January and people were calling for a huge correction, I was recommending buying gold stocks. There was a ton of fear out there but you must remember: it is always the hardest to buy stocks when you are supposed to buy. Since then, gold stocks are up about 20% on average.
I remain bullish about the future for gold and gold stocks. I am praying for at least one more correction to add to my positions, but I'm afraid it may never arrive. Keep an eye on gold- I believe we are very near a turning point.
source: expected return