AFRICANEWSWIRE.NET (June, 19 2012) In a recent Penny Stock Detectives stocks-ready-to-move-up">article, editor Sasha Cekerevac notes that for quite a while, there has been a steady underperformance in gold stocks versus gold bullion. Cekerevac believes this divergence appears to have shifted, as we’ve seen gold stocks outperform gold bullion and the overall market, and it looks like this trend might continue.
“There have been rumors of gold stocks being under pressure from hedge funds that have had a relative value trade in which they bought gold and shorted gold stocks,” comments Cekerevac. “It appears from looking at the charts that this has ended and large institutions are reversing this play, as a large amount of buying has occurred in gold stocks the last few weeks.”
These technical indicators are a positive sign, but the underlying fundamentals for gold stocks are extremely compelling. In Cekerevac’s opinion, considering where gold is trading, junior mining companies and gold stocks are massively undervalued.
A phase of pessimism for gold stocks and over-enthusiasm for social media stocks just ended. With the recent decline of these new “hot” stocks and a large number of buyers stepping into gold stocks and junior mining companies, the flow of funds will continue in this direction for some time, believes Cekerevac.
With the price of gold starting to rebound from the recent sell-off, this imbalance with gold stocks had to end eventually, notes Cekerevac. There is a high probability, he argues, that recent massive buying will lead to additional accumulation.
“No one can predict if it will continue,” says Cekerevac, “but it certainly is good to have buyers stepping in week after week.”
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The editors of Penny Stock Detectives believe low-priced stocks, when researched properly, present investors with great opportunities to accumulate wealth and to increase the value of their investment portfolios. You can learn more about Penny Stock Detectives at www.pennystockdetectives.com.
Sasha Cekerevac, BA, and Danny Esposito, B. Comm., lead editorial stock analysts at Penny Stock Detectives, in conjunction with stock market guru George Leong, B. Comm., have just updated their breakthrough video, If You Missed Apple, Shame on Us; If You Miss This…which highlights a company these stock analysts believe looks very similar to Apple Inc. in its early days. To see the video, visit: http://www.pennystockdetectives.com/press.