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Strategies & Market Trends : Dino's Bar & Grill -- Ignore unavailable to you. Want to Upgrade?

To: Goose94 who wrote (12007)	3/5/2015 10:58:44 AM
From: Goose94	Respond to of 203085

As Doug Casey likes to say, no one has a crystal ball. However, recently we've seen some bullish signs on the horizon that might herald the end of the long drought in the gold market. And very timely, especially in light of these 3 bullish signs that recently surfaced: 1) The smart money is ready to make its deals. Private-equity firms armed with more than $8 billion in cash are now circling the mining industry. "When PE firms make an investment," states Forbes contributor Michael Lingenheld, "they typically plan to hold the asset for at least three years, so it's important to catch cyclical industries on the upswing." And right now miners give investors a better deal than ever: the Market Vectors Junior Gold Miners ETF (GDXJ), for example, currently trades at 76% of book value, while GDX, the ETF for larger mining companies, has an aggregate price-to-book ratio of 1.06. 2) Deflationary pressure times two. The global economy is fighting a dual challenge in the form of a stronger US dollar and falling oil. The last two times oil dropped more than 50% in one year - 1986 and 2008 - gold rallied over 25% the following year. Year to date, gold is already up 10% against most of the major currencies and 7% against the US dollar. "Outside of the US dollar," says Lingenheld, "gold was the best-performing currency in 2014, and it's off to a hot start this year." 3) Gold Miners ETFs are picking up volume. Investor sentiment seems to be turning toward the yellow metal and its miners. Despite a sharp drop in early February, five gold miners ETFs (including GDX and its little brother, GDXJ) rank among the top 10 non-leveraged ETFs. Year to date, investors have poured $885.4 million in new assets into GDX - one of the best results among sector ETFs - and GDXJ attracted nearly $226 million. But whether the next bull market starts tomorrow or next year, start it will - and you want to be prepared when it happens.