should you buy gold mining stocks?
TRANSCRIPT
SHOULD YOU BUY GOLD MINING STOCKS?By www.ProfitableTradingTips.com
http://profitabletradingtips.com/profitable-trading-tips/should-you-buy-gold-mining-stocks
Gold went up for years and then it went down again.
http://profitabletradingtips.com/profitable-trading-tips/should-you-buy-gold-mining-stocks
With investors expecting a continued market rally at least in 2017 gold is down again and perhaps oversold.
http://profitabletradingtips.com/profitable-trading-tips/should-you-buy-gold-mining-stocks
Before We Continue…Click the links below to get your
FREE training materials.
Free Weekly Investing WebinarsDon’t miss these free training events!
http://www.profitableinvestingtips.com/free-webinar
Forex Conspiracy ReportRead every word of this report!
http://www.forexconspiracyreport.com
Get 12 Free Japanese Candlestick VideosIncludes training for all 12 major candlestick signals.
http://www.candlestickforums.com
http://profitabletradingtips.com/profitable-trading-tips/should-you-buy-gold-mining-stocks
But, what happens when Trump’s promises don’t pan out and the US economy does not sparkle in response to his fiscal policy measures.
http://profitabletradingtips.com/profitable-trading-tips/should-you-buy-gold-mining-stocks
For example, all of that corporate cash offshore might come back to the USA and then be used for mergers and acquisitions instead of job creation.
http://profitabletradingtips.com/profitable-trading-tips/should-you-buy-gold-mining-stocks
If the stock market starts to sag and worse if Trump starts a disastrous trade war gold will make a comeback.
http://profitabletradingtips.com/profitable-trading-tips/should-you-buy-gold-mining-stocks
The fact of the matter is that when gold is on the way up it is better to own mining stocks than gold bullion.
http://profitabletradingtips.com/profitable-trading-tips/should-you-buy-gold-mining-stocks
Should you buy gold stocks today? the street thinks so.
http://profitabletradingtips.com/profitable-trading-tips/should-you-buy-gold-mining-stocks
According to them gold stocks instead of gold belong in your portfolio.
http://profitabletradingtips.com/profitable-trading-tips/should-you-buy-gold-mining-stocks
the vaneck vectors gold miners etf (gdx) , barrick gold (abx) , yamana gold (auy) , goldcorp (gg) and newmont mining (nem) may be deep in bear market territory from their 2016 highs
http://profitabletradingtips.com/profitable-trading-tips/should-you-buy-gold-mining-stocks
but they are also in bull market territory since their lows and have outperformed since the end of 2015.
http://profitabletradingtips.com/profitable-trading-tips/should-you-buy-gold-mining-stocks
this outperformance makes investments in gold stocks important components in investor portfolios in 2017.
http://profitabletradingtips.com/profitable-trading-tips/should-you-buy-gold-mining-stocks
The article comes with lots of graphs and the suggestion to invest on weakness whether you are looking to buy bullion, futures or gold stocks.
http://profitabletradingtips.com/profitable-trading-tips/should-you-buy-gold-mining-stocks
What Are Your Other Options?
http://profitabletradingtips.com/profitable-trading-tips/should-you-buy-gold-mining-stocks
Maybe you invested in gold or gold mining stocks way back in the 1970’s or more likely in the run up from 2000 to 2011.
http://profitabletradingtips.com/profitable-trading-tips/should-you-buy-gold-mining-stocks
And then you saw your portfolio slide and swore never to invest in the shiny stuff again.
http://profitabletradingtips.com/profitable-trading-tips/should-you-buy-gold-mining-stocks
One tried and true way to take advantage of a possible bull market in gold and gold mining stocks is with options.
http://profitabletradingtips.com/profitable-trading-tips/should-you-buy-gold-mining-stocks
We wrote about trading gold after it fell from its peak.
http://profitabletradingtips.com/profitable-trading-tips/should-you-buy-gold-mining-stocks
there are those who believe that the world economy is going from bad to worse and that paper currencies will be worthless in the long run.
http://profitabletradingtips.com/profitable-trading-tips/should-you-buy-gold-mining-stocks
this thinking attracts gold buyers when the economy tanks.
http://profitabletradingtips.com/profitable-trading-tips/should-you-buy-gold-mining-stocks
then, when stocks start performing well, people start selling their gold and buying apple.
http://profitabletradingtips.com/profitable-trading-tips/should-you-buy-gold-mining-stocks
Predicting when gold will go up or down can be chancy.
http://profitabletradingtips.com/profitable-trading-tips/should-you-buy-gold-mining-stocks
This is why trading stock options on gold mining stocks may be the way to go.
http://profitabletradingtips.com/profitable-trading-tips/should-you-buy-gold-mining-stocks
in trading stock options a buyer limits his risk to the premium paid.
http://profitabletradingtips.com/profitable-trading-tips/should-you-buy-gold-mining-stocks
let us say that your fundamental and technical analysis of abc stock indicates that it will soon rise in price.
http://profitabletradingtips.com/profitable-trading-tips/should-you-buy-gold-mining-stocks
you can buy a hundred share of abc for $100 a share or $10,000.
http://profitabletradingtips.com/profitable-trading-tips/should-you-buy-gold-mining-stocks
or you may see that you can buy a $102 option on abc for $1.
http://profitabletradingtips.com/profitable-trading-tips/should-you-buy-gold-mining-stocks
a $102 option means that you can buy to stock for $102 a share at any time up until the end of the contract.
http://profitabletradingtips.com/profitable-trading-tips/should-you-buy-gold-mining-stocks
obviously the stock is currently worth $100 a share and you would not want to execute the contract.
http://profitabletradingtips.com/profitable-trading-tips/should-you-buy-gold-mining-stocks
but, if your analysis is correct the stock price will go up.
http://profitabletradingtips.com/profitable-trading-tips/should-you-buy-gold-mining-stocks
let us say that the stock goes up to $110 a share.
http://profitabletradingtips.com/profitable-trading-tips/should-you-buy-gold-mining-stocks
if you purchased the stock you make $1000 minus fees and commissions.
http://profitabletradingtips.com/profitable-trading-tips/should-you-buy-gold-mining-stocks
that is a ten percent return on investment.
http://profitabletradingtips.com/profitable-trading-tips/should-you-buy-gold-mining-stocks
and if the stock price falls to $90 a share you lose $1000, ten percent of your trading capital.
http://profitabletradingtips.com/profitable-trading-tips/should-you-buy-gold-mining-stocks
but in trading stock options on abc you pay $100 for a $102 call option on 100 shares.
http://profitabletradingtips.com/profitable-trading-tips/should-you-buy-gold-mining-stocks
the stock goes up to $110. you execute the contract and purchase the stock for $102 a share and then sell for $110 a share.
http://profitabletradingtips.com/profitable-trading-tips/should-you-buy-gold-mining-stocks
you make $8 a share or $800 which is a $700 profit or 700% return on invested capital.
http://profitabletradingtips.com/profitable-trading-tips/should-you-buy-gold-mining-stocks
and, if the stock price falls to $90 you lose your initial $100 and no more.
http://profitabletradingtips.com/profitable-trading-tips/should-you-buy-gold-mining-stocks
Should you buy gold stocks or options?
http://profitabletradingtips.com/profitable-trading-tips/should-you-buy-gold-mining-stocks
Unless you own an infallible crystal ball the way to go is probably options, calls in this case.