The US gold price broke through 1300 and is now testing that support level. If support holds, then the outlook for the gold price is very promising in my opinion. This could lead to a lengthy bull run in gold stocks (which could end up taking some stocks to extremely overbought situations).
If you are a believer in gold's future, then I wouldn't worry too much about the day to day movements of stocks. It's the major moves where wealth is created and getting in early can reap enormous returns. Whilst some might be getting upset at the lack of movement in stocks such as SLR, others will be counting their blessings to be able to accumulate quality gold stocks before they reach fair value and then hopefully over valued (where selling comes into it).
From my experience, in a bull market the large producers will run first, followed by the mid tiers and then the explorers. Whilst the bull market isn't certain as yet, the large gold producers in general have rebounded from their lows better than the mid tiers.
I'm not saying that SLR is gauranteed to do well, but I am saying that this current period could be a great buying opportunity for astute investors if hindsight ends up showing that now was indeed the beginning of a new gold bull market.
SLR Price at posting:
43.5¢ Sentiment: Buy Disclosure: Held
