Positives Outweighing Negatives for Bullion and Stocks

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Gold is showing continuing signs of strength amidst volatile general stock and commodities markets and gold stocks have done particularly well over the past two months. . .

Gold is showing continuing signs of strength amidst volatile general stock and commodities markets and gold stocks have done particularly well over the past two months, but there are some negative signs around in the important Middle Eastern and Indian jewellery/investment sectors.

. . . those who invested in gold stocks a couple of months ago in the belief that they had been oversold will have been celebrating with some huge increases in price from recent low points. If their timing was right gold stock investors will have been making terrific returns while the rest of the market remains in turmoil amid continuing global economic uncertainty with no-one sure where things will turn next. Gold does normally thrive on economic uncertainty, although in the recent downturn gold stocks fell along with just about everything else in the sudden and rapid need for liquidity to cover shortfalls elsewhere - a reason why liquid stocks performed far worse than illiquid ones!

But given a little pause for breath gold's values have been becoming more apparent to the general investment community and while it is true the lack of availability of credit, coupled with the collapse in stock prices, has put a number of the more cash-strapped gold juniors in jeopardy, those with cash sufficient to see them through at least a couple of years should remain in business, and if they have a genuinely good deposit/project in sight should continue to do well in the current climate.

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