I have been bullish on gold in recent years, due in part to the state of the current global economy (global debt load, emphasis on cheap money from central banks around the world, and geopolitical risk factors which I do not believe are being factored into global markets), as well as the fact that gold miners have generally done a very good job of improving productivity and expanding margins at a time when gold prices appear to be on the rise once again.
Gold prices generally follow inflation, with variation relating to the greed/fear with which investors trade and the extent to which investors seek to keep their money "safe" from inflation or a significant market correction.
Gold prices are on pace to have risen for three consecutive quarters, something which has not happened for approximately seven years, as traders become increasingly worried about how markets will react to various negative stimuli which are coming into play currently.
Equities have generally ridden the wave of low interest rates and a lack of relatively attractive places to put one's money to new heights. Nearly every global market has experienced all-time highs within the past year, and while this trend may continue and investors may calm down after the upcoming earnings period, it appears that pundits are hedging their bets and adding to existing positions or initiating new ones.
Gold has momentum, and it looks like this may (finally) be a good time for those who own some of the precious yellow metal.
Invest wisely, my friends.
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