Cookie Jar Profits: Gold makes its move while nobody looks
Today's Financial News - Posted May 6, 2009
Gold has jumped in value over the last few sessions, handing savvy traders some strong gains. When the bulls are in charge, most investors ignore the shiny metal. But now may be the best time to buy.
By Andrew Snyder, TodaysFinancialNews.com
Baltimore – (TFN): The bulls are back in town once again. Even the news Bank of America (NYSE:BAC) needs $35 billion in capital, Wells Fargo (NYSE:WFC) needs $15 and Citigroup (NYSE:C) needs $10 could not keep the bovine from controlling Wall Street.
Plenty of investors are rightfully surprised by the bullishness.
Even with the S&P well above 900 and into positive territory for the year, gold bugs remain optimistic for their precious commodity. With the sudden “turnaround” (believe it or not) in economic fundamentals, the fuel for a monstrous bout of inflation is starting to pile up.
That means investors are buying gold and keeping a close eye on the dollar.
With gold finding some anxious buyers, it is a fantastic time to be a Hot Stock Confidential subscriber. One of my recent picks, a major African miner is up by double-digit proportions today. Since its 52-week low in November, the company’s share price has soared by over 100%. The gains are going to continue.
The company is just one example of gold’s quiet power over the last few months.
More gains on the way
If you have been tracking gold’s action lately, you know it recently dipped well below the critical $900 level. Many commodities traders were convinced it was the start of a long, painful trend. They claim the metal is no longer tied to economic variables like it used to be.
This week’s action is proving them wrong.
With the vast majority of Obama’s stimulus money still circulating the void of brain matter that is Washington, many traders are surprised by the amount of positive earnings reports and shattered expectations over the past couple of weeks.
Inflation hawks are left wondering what it will be like once the free money truly starts falling from the sky.
Wall Street was focused on a better-than-expected jobs figure this morning. Traders are making their moves preparing for Friday’s big payroll figure.
They figure, rightfully so, more people working will lead to larger inflation.
As so many financial experts, and even government officials, have said, it is not a question if strong inflation will hit; it is a question of when.
According to today’s action, Wall Street thinks the gains are on the way sooner rather than later. That means it is a good time to be a gold investor and, according to the portfolio, an even better time to be a member of Hot Stock Confidential.
Next Article: The TFN Complete Guide to Wind Energy Stocks
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