Market sentiment and global growth bode well for the metals and mining sector. My trend analysis suggests it could rally 33% in the next six months.
The last time China devalued its currency, the yuan, global investors bailed out of natural resources until the dust settled.
The last time commodities were the best-performing asset class for an entire year was 2002. That’s when the last commodity bull market cycle began.
When investors are fearful of a trade war, they’re not going to be dumping money into U.S. stocks. But they will consider gold.
Monitoring the large speculators is not a precise timing indicator. But it’s a valuable piece of information to determine when it’s the right time to bet against the crowd.
I’m comforted by the fact the mainstream financial press isn’t talking about gold. Because, by many measures, an investment in gold looks like a sure thing right now.