Loading ...Precious Metals: Positive Risk vs. Reward
By Biiwii
snip
I did not predict a bear market. That was confirmed (and well respected) later. But in the summer of 2011, it was obvious that the gold sector was not only due for, but in need of a cleaning. Well folks, that is the good news! We gold bugs have been deep cleaned, buffed, waxed and are just about ready for prime time, hopefully much wiser and more humble than before. The bear market has been a good thing. Period.
I could unleash a chart fest showing gold’s long-term support and downside risk, individual gold stocks that are already in bull markets and myriad other things, but I want to keep this article compact and on message. That message is that a huge proportion of the risk (vs. reward) in gold is now in the rear view mirror with four solid years of bear market activity. So we will show some strategic monthly charts instead.
The Central Gold fund’s current discount means that players are risk-averse to gold, almost as if saying “with that juicy 1/4 in interest the Fed just gave us, who needs it?” Yes, it’s sarcasm. We have long held that while confidence in the Fed remains intact, gold will remain on the outs. But long-term investors need big pictures and this is a picture of value, no matter what price does in the near-term.
A lot more http://biiwii.com/wordpress/2015/12/22/precious-metals-positive-risk-vs-reward/