For those investors lamenting gold stocks for their being stuck in the mud for several months, it should come as a relief that we are now moving into the most bullish seasonal time of the year for gold. This 40-year seasonal gold chart shows that gold often sees final weakness just before August begins and then begins a torrid run of 8 to 10 weeks into October.
Perhaps it was no surprise with a pivotal US Federal Reserve interest rate decision pending, but hard assets were taken down 'hard' last week. Copper, gold, silver, platinum and oil crumpled heavily, and reached oversold conditions not seen in months, even years. However, experience suggests whenever multiple commodities hit the ground hard in unison, it is really an opportunity cloaked in panic. When I studied my own forecasts and saw they lined up well with this panic bottom idea, I began to focus on some resource stocks with star power.
While most in the mining industry lamented a bear market as tech boomed, Goldcorp (G) founder Rob McEwen adopted open-source innovation.
