A Golden Stock Tip For 2014?

golden stock tip 2014

Is 2014 really going to be such a bad year for Mr. Gold?

Are you looking for a Golden Stock Tip in 2014? If so, you’ve come to the right place. This golden stock tip for 2014 is exactly what you’re looking for.

So what is this golden stock tip exactly?

My golden stock tip for 2014 is a stock idea I’ve shared before. You’ll see I mentioned it in my December 2013 stock ideas, and again in January. But while I was hesitant to wholeheartedly recommend this golden stock tip, it now looks like there’s a possible catalyst on the horizon.

Could 2014 be the year of the golden stock tip? Keep reading to find out if any of the gold picks below are right for you in 2014…

Technical Analysis of Golden Stock Tip:

Before getting into specific golden stock tips for 2014, I want to provide a little technical backdrop to these ideas. This way you’ll have better context into my perceived risk/reward. But admittedly…

Other people have done technical analysis on gold stock trading ideas. And they’re saying it better than I could. So check out this article about the bullish RSI divergence in the gold miners. It provides a very interesting perspective. And this indicates momentum might be shifting in favor of the bulls.

Aside from the relative strength, you can see in the post above that the price action of the gold miners is slowly improving. Going into 2014, gold buyers have had much more success than the year prior. Of course it’s still early to call a bottom. And maybe this is just another trap to lure in eager bullion bears. But hey…

I promised you there might be a catalyst for the golden stock tip of 2014. So let’s take a look…

Fundamental Golden Stock Tip Potential:

The reason 2014 might be the year for the golden stock pick isn’t just because of the improving technical price action in gold mining stocks. There are actually a couple of potential influences that could positively influence the price of gold in 2014. So what are these catalysts for the change in gold price?

Asian demand for gold is steady. Rumor has it the Chinese government is looking to find other places than USD denominated treasuries to put their money.  So they are reaching for gold and other hard assets. This demand for physical gold (in exchange to paper claims to gold) might eventually start to materially impact gold prices. But there’s an even bigger possible catalyst on the horizon…

While blogs like Zerohedge have been documenting the rehypothecation of gold for awhile, the manipulation of gold prices is moving into the mainstream media. Plus Deutsche Bank exited the gold price fixing, after regulators started to clamp down. If that’s not enough…

Paul Craig Roberts wrote a very compelling step by step look at the “How’s and Why’s of Gold Price Manipulation.” He’s a credible source and this article is definitely worth reading to wrap your head around the size and scale of what’s happening in the global gold markets. So…

Given the ongoing QE, the apparent manipulation of gold prices and robust Asian demand for gold, the technical price action in gold thus far in 2014 could be worth watching, in case it morphs into a sustainable rally higher.

Now that we’ve got the big picture of the 2014 gold market, let’s take a loop at some specific golden stock picks…

Golden Stock Ideas for 2014?

Barrick Gold (ABX) is a major gold producer. It’s a big company with a $24B market cap. If you’re a long term value invsetor, you’ll be interested to know the stock had a horrible year in 2013. Not only did the price of Barrick get hammered, the stock also had a lot of bad news is priced in. But the company has disciplined operations so if you’re looking for the best in breed gold miner this could be a profitable stock pick for 2014.

Iamgold (IAG) – (my personal golden stock idea for 2014) is a smaller Canadian gold miner that’s weathering the storm in declining gold prices quite well. It’s always nice to see a disciplined and capital conscious management, which is definitely the case for IAG. Another smaller gold miner that looks good is NGD. But I don’t know too much about it so you’ll want to do more of your own research. These guys are still in overall down-trends though so keep positions small and don’t hesitate to cut losses.

If you just want broad exposure to the gold industry in 2014, then maybe an ETF is what you need. GLD, GDX and GDXJ are also an easy way to trade and own gold stocks in 2014. GLD gives you a claim to gold, while GDX and GDXJ give you exposure to gold miners and junior miners respectively. With these equity instruments you can cash in on this golden stock tip for yourself going into 2014.

And By The Way: If you’re looking for more information on new stock ideas and investments themes in 2014, I encourage you to sign up for the free email newsletter below. You’ll get all kinds of ideas unavailable anywhere else online.

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