Thursday January 05, 2012
by Curtis Hesler, editor The Professional Timing Service
There was a study done in the 1970’s that discovered that gold stocks tended to bottom in the fourth quarter and rally strongly into the end of the first quarter of the next year.
Thus, looking for year-end bargains in the gold sector makes profitable sense, especially this year.
Gold topped out at over $1,900/oz. in August and September. Since then, it has corrected to as low as $1,535, and it has consolidated around the $1,700 level since.
There is significant support now at $1,600, but I don’t expect it to dip that far before the next big rally leg begins.
I am confident that we will see gold significantly higher in 2012, and perhaps we will see new highs by March.
Another advantage is that the average gold stock is selling cheaper as we approach the New Year than it did during the great crash of 2008. Now is the time to do a little gold mining and buy
Iamgold (
IAG).
Iamgold operates five mines and has some very interesting development projects in the works … and -- this is the most important part -- they are producing a million ounces a year.
Gold mining is a capital intensive enterprise; and these days, money is harder to find than gold. You need to have production, cash flow, and growth projects you can afford to exploit from internal cash.
Iamgold has all three, and even pays a 1% dividend. That is not all that outstanding, but it will pay as well as a CD with the potential to double during the next leg of the gold bull market.
Learn more about this financial newsletter at Curtis Hesler's The Professional Timing Service.
