There are three words that you probably haven’t heard in a while… well, for the past year or so anyway:
Bullish on Gold.
And there’s plenty of reasons for that, not the least of which is the anticipation of the Federal Reserve potentially tapering down its stimulus program in the near future.
It seems almost on a weekly basis that rumors of a stimulus wind-down finds its way onto the airwaves — something that 6 months ago would have sent the yellow metal into a free fall.
Lately however, it hasn’t.
Gold is up 17% since tapering rumors gained strength in early July. To me, this shows remarkable strength in the rally.
I’m not saying the worst is over yet for gold. But a move of such forte against what would otherwise be considered bearish headwinds is a very positive sign.
Then there’s the world’s top two consumers, India and China. Each on track to buy a record 1,000 tonnes this year, according to the World Gold Council.
At the same time, ongoing wage disputes from Mexico to South Africa are leading to strikes and subsequent mine shutdowns.
These latest events have given gold some of its shine back. I’m now gazing bullishly on the sector and have identified two options for you to profit from gold’s second coming…