Is it too late to get into gold? Not according to some experts who are still telling anxious clients to buy, buy, buy!
Gold ended last year in violent fashion, dropping 21 percent in less than three months. The sudden move, coming as equities rebounded in December, raised doubts among many investors about the sustainability of a trade that has been a winner for 10 years.
But these kinds of moves are simply par for the course, said the long-term gold bulls. It’s just a way of shaking out the weaker and more speculative investors that pile into the metal for a short-term trade, they said.
After bottoming on the final day of 2011, gold is back at it again, up five percent in the new year, compared to a 3.9 percent return for the S&P 500 index. Despite the volatile ending, gold finished up 2011 by 10 percent, while the benchmark for U.S. equities was virtually unchanged.
“In my view, gold is still very much in a super bull market,” said Alan Newman, who’s made his clients money for a long time by recommending the metal in his CrossCurrents newsletter. “Last year's activity was quite normal for a super bull market, in which corrections are supposed to be scary.”
Is Bullion Back? 'Gold Is Still In a Super Bull Market' - CNBC
0 comments:
Post a Comment