Gold Shines in a Murky Environment

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Since my last, somewhat upbeat, article on gold bullion and gold stocks about five weeks ago they have come out of hibernation with a vengeance, with gold metal up by 3.8% and gold stocks (as measured by the HUI Gold Bugs Index) by 8.5%.

Just when everybody thought gold bullion was down and out and embarking on a downward spiral, the shine returned. Even erstwhile gold bug Richard Russell started favoring the Dow stocks over the yellow metal, but more about that later.

Since my last, somewhat upbeat, article on gold bullion and gold stocks about five weeks ago they have come out of hibernation with a vengeance, with gold metal up by 3.8% and gold stocks (as measured by the HUI Gold Bugs Index) by 8.5%.

One of my arguments at the time was that gold stocks, long-standing laggards at that stage, were starting to display relative out-performance against the gold price. The stocks have often in the past anticipated an imminent rise in the metal price and this time round turned out to be no exception.

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