The Really Useful Gold Thread

The steep fall in dollar gold bullion prices should be seen as a buying opportunity, according to RBC Capital Markets. The resources team at RBC says that despite the pounding bullion has taken over the past week, “we believe it is a good time to start or add to a position in gold stocks.”

After surging last week to a near-18-year high of $480 an ounce, gold was bludgeoned this week, falling $10 an ounce on Wednesday alone. The price was hovering under $462 an ounce on Friday, largely unchanged day-on-day.
Statistics show that the bull position on COMEX (a division of the New York Commodities Exchange) was at a record level of just over 21 million ounces last Friday, October 14. RBC’s Stephen Walker say: “Whenever the market is this long, speculators always get nervous and take profits.”

Walker noted a firmer tone in gold bullion this Friday, with a pickup in buying interest overnight in the Far East, followed through in London. “Given the 10% pullback in the stocks over the past week,” says Walker, “we believe it is a good time to start or add to a position in gold stocks.”

Three of RBC’s best gold stock ideas: Newmont, Goldcorp, and Glamis.