Best gold stocks
Gold miners etf
Gold etf
are all ways how to invest in gold
As price of gold surges for several years already there is common request to find best gold stocks to have possibility to participate on strong rising uptrend in gold. There are three main ways how to invest in gold and related securities. But they are not producing similar results. Gold ETF is
commodity ETF
tracking price of this precious metal. The price of this metal is purely based on speculation and demand from buyers. Other two options, individual best gold stocks or Gold miners ETF have little different background. All these shares are based on real companies. Companies with their own management, their own business model and their own costs and revenues.
Fundamental ideas for selection
of best gold stocks
I have already written about way of choosing the
right silver mining companies.
In terms of gold, there is naturally not much to add as you can just swap the noun silver for gold and here you go. The very same logic and valuation principles apply. If you prefer to invest in gold then it is definitely better to select clear plain
gold etf trading strategy.
But gold miners stocks could offer different reasons for trading them in short or mid term period for possible
swing or position trades.
And the reasons are the same I already mentioned above. They are real companies. They have their own business model . They can surely make money when price of gold is north of 1500 USD per ounce. But these companies will make money also when price of gold decline to 1000 USD per ounce or less.
Gold miners ETF
If you do not want to select individual stock but prefer to monitor performance of whole sector representing gold mining companies (most of them dig silver too) then you can use exchange traded funds. There are two possible gold miners ETF provided by Van Ecks ETF provider. Market Vectors® Gold Miners ETF (GDX)
Market Vectors® Junior Gold Miners ETF (GDXJ)
Free stock screener
for best gold stocks
There is option to use technical analysis to select best candidates from group of gold mining companies for trading. Sometimes it is better just to check the trend and then find best gold stocks which are trending in same direction. How to select such stocks ?I would use these basic parameters to find them: - stock must be liquid
- stock has price above 10 USD
- stock must be in gold sector of course
If you plan to buy such stock then I recommend to evaluate
relative strength
of these stocks. It should be done visually, but such stock should be above their 50 day and 200 day
moving averages.
Such free stock screener could be used in
Amibroker, best stock analysis software.
Or you can use some websites offering good stock screening, like
FinViz.
FinViz stock screener looking for buy candidates produces these result :
Then you have to do
stock chart analysis
of every individual stock price chart and decide if there is possible to find some good stock trade setup or not. Every setup must fit not only technical parameters but also
money management rules
and
risk reward ratio.
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