Commodity Market Tip – Buy Gold
For those of you only interested in share tips or stock market tips that are a ‘sure thing’ I would suggest you look away now.
There is a well known expression in the financial markets which says “Never try to catch a falling knife.” What this basically means is that when a price is heading for the floor, don’t try to grab it until it reaches the floor.
There are exceptions to every rule, however, and this Stock Market Tipster believes the recent sell-off in the price of Gold is simply a long overdue correction in a long term bull market, which has seen the price of the yellow metal increase every one of the last 12 years!
I believe the vicious sell-off in the last week is overdone, but, more importantly, I believe the long term prospects for Gold are as strong as ever. At some point, Quantitative Easing will have to stop, whether America likes it or not, and the resulting sell-off in the US Dollar and the Dow Jones, S&P and NASDAQ will make the crash of October 1987 look like a tea party. There is a crash coming, make no mistake about it. The difficulty is trying to predict when it will happen.
For now, I’m going to resume my long term bullish bias towards Gold and recommend it as a new Commodity Market Tip at its current price of $1,357.
Those of you wishing to follow the price of Gold can do so by clicking the link to Bloomberg here.