Closing Bell [WATCH] — Time to Jump on Gold and Lithium
I’m not sure if central bankers have stopped the banking liquidity crisis in its tracks with their actions, but they have certainly taken the wind out of the sails of the bears for now. Enough for me to issue three new trades this week! Watch the Closing Bell video for two small lithium stocks that I think may also be worth looking at.
Enjoy! The relentless selling pressure of the past couple of years has definitely had an effect on me, because when I see a bit of green on the screen, I feel about 10 pounds lighter. Are we finally through the worst of it?
Is it time to go hunting for bargains or is it yet another Pied Piper leading us to oblivion?
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I’ve taken the bait on a few little gold stocks this week.
I sent out a buy alert for three stocks on one day that probably had members of my service falling off their chair because I haven’t been trading much during this bear phase. I’m still of the view that the banking crisis could have more to come, especially if the state of commercial property companies in the US continues to deteriorate. But gold looks like it could catch a bid from here under a few different scenarios, and it’s only a stone’s throw from the all-time high.
It won’t take much to inspire a nice steady trend higher in gold, and yet most of the small-cap gold stocks aren’t rallying. I think that has created a nice buffer that should mean even if the gold price retreats, the gold stocks should hold up fairly well. If the gold price jumps, then we should see a nice spike as gold stocks play catch-up.
There’s also a bit of money coming back into some of the smaller commodity stocks. Perhaps the bid for Liontown Resources [ASX:LTR] by Albemarle [NYSE:ALB] has sparked a bit of buying interest. I show you a couple of small lithium stocks in the video above that spiked this week from a long-term buy zone.
They could be worth looking at. My colleague, James Cooper, is also excited about the mining space. His premium trading service, Mining: Phase One, only launched on Thursday and he already has his first trade alert out.
If you want to see what it’s all about, check it out here.
Until next week,
Murray Dawes,
Editor, Money Weekend