Goldbugs among you were thrilled to see gold break the four-figure mark last week – but is this rally fool’s gold or a sustainable trend? I got curious and dug into the latest news on this hot topic. As our own All-Star Pinnacle Digest explains, gold often heats up in the face of market uncertainty – it’s the classic “safe haven”. What’s interesting in this particular rally are the surprise factors driving gold to higher levels. On SeekingAlpha Cam Hui asks if the world’s largest gold producer Barrick’s Gold Corp. (ABX) didn’t catapult gold upwards with their recent de-hedging program.
Also on SeekingAlpha, FP Trading Desk explores a very surprising factor in gold’s meteoric rise: India. Apparently gold plays a central role in both Indian weddings and Diwali, the fall Festival of Light. September marks the beginning of high season for both these happenings.
If you’re interested to go long gold but don’t quite know how, Mint explains Investing in Gold Without Getting Scammed. If you think the chief beneficiaries of the trend will be miners, you might want to check out Northgate Minerals (NXG), profiled by Invest With an Edge on Seeking Alpha, or Houston Lake Mining (HLM), a favorite of Pinnacle Digest.
Still there are plenty of skeptics out there – and there’s a trade-able trend in a strong contrarian streak, too. The Wall Street Journal recently proclaimed this rally Golden Eggs: Danger in the Yellow-Metal Stocks and SeekingAlpha’s Vitaliy Katzenelson offers his 5 Reasons to Avoid the Gold Rush.
Where do you net out on gold lately? Are you panting to get in, or worried about getting trampled on the way out?
[image: The Lure of Gold by bogenfreund on Flickr]
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