Gold or gold stocks?
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Those with a positive assessment of certain commodities or precious metals is faced with the question of whether it directly into the Commodity or “appropriate” Shares to invest. Not an easy question. “In both”Would be my immediate answer. But it must be demonstrated rather more subtle, and finally there’s these variants significant differences.
Only have these two charts show that GOLD and Shares of gold mines have very different price trends. To answer the question whether in the near term gold or gold stocks will perform better, the Relative Strength be consulted.
This chart shows the ratio (ratio) of Gold stocks to Gold. Decreasing curve means that gold stocks compared to physical gold perform worse. Rising curve means that gold stocks to gold at an advantage.
It is striking that Gold stocks have in violent movements in global equity markets, the same rate developments. People who buy gold stocks, buying Equity risk and Shares correlations! The gold stocks were not immune to the sell-offs of the financial crisis.
Since the end of October, in the relative strength of gold stocks to gold, however, established a counter-trend. The Calm the stock markets and Rebound in gold prices Gold stocks could lie down targets a significant physical gold. It’s quite possible that this trend will continue for a while.
As way of introduction said: “He who believes in an upward trend of gold, should have both in the depot.” There must be aware of one simple that Gold stocks more shares instead of gold are. The above ratio, the relative strength gives interesting information, but as a basis for decision a little too easy.
