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President Obama will be sworn into office for a second term on January
21 and that’s good news if you own gold stocks. Why? Because gold stocks, [as represented by the XAU] have increased, on average, by 20% during inaugural years since 1985 (28% in 2005; 36% in 2003). While there’s no real rhyme or reason as to why gold stocks thrive in inauguration years – statistical anomaly or otherwise – it is yet another reason to buy gold stocks right now. Words: 312; Charts: 1
So says Chris Preston (www.WyattResearch.com) in edited excerpts from his original article* entitled Another Reason to Buy Gold Stocks NOW.
This article is presented compliments of www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and www.munKNEE.com (Your Key to Making Money!) and may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.
Preston goes to say in further edited excerpts:
I stumbled upon the following chart on Business Insider yesterday, which shows the performance of gold mining stocks in post-election – i.e. inauguration – years since 1985:
Not a bad chart… but, as the chart cautions in very fine print at the bottom, “past performance does not guarantee future results.” Nevertheless, the 25-year history of stellar performance in post-election years – statistical anomaly or otherwise – is yet another reason to buy gold stocks right now. [Indeed,] as my fellow Resource Prospector Kevin McElroy wrote in his “A Rare Opportunity in Gold Stocks” article earlier this week, “Now is arguably the best time in a decade to buy gold stocks” because:
- gold stocks are cheap, down approximately 30% from their September 2011 highs. XAU, the Philadelphia Gold and Silver Index (charted above) that tracks the stocks of gold and silver mining companies, is as cheap as it’s been since August.
- there are plenty of gold stocks brimming with potential right now – particularly in Africa, which boasts the three fastest growing economies in the world and the largest collection of untapped gold deposits on the planet.
Those are tangible – and very real – reasons to buy gold stocks now…but the difference this year is that there are already plenty of other good reasons to buy them.
Editor’s Note: The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.
*http://www.wyattresearch.com/article/another-reason-to-buy-gold-stocks-now/29233
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