Notes on Gold Bullion, Stocks

Source:

...over the period since August 16, most gold stocks have displayed strong price moves surpassing the commodity and gold ETF move, indicating that gold stocks are once again showing real leverage to a rising commodity price environment.

Analysts at RBC Capital Markets have pointed out that the spot gold bullion price set a new all-time high on Wednesday this week. On Wednesday, gold touched $848/oz, before closing for the day at $832/oz. While the record high for gold is $875/oz, that number was seen intra-day on January 21, 1980; the close that day, however, was $825.50/oz.

In the current pricing environment, RBCCM analysts also believe that "Beta Is Back". Spot gold is up 27% from the (Northern Hemisphere) summer low of $645/oz on August 16; over the same period, most gold stocks have displayed strong price moves surpassing the commodity and gold ETF move, indicating that gold stocks are once again showing real leverage to a rising commodity price environment.

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