FYI:
Gold's rout may be far from over, with many analysts and traders surveyed by Reuters predicting prices could fall to $1,000 per ounce by the end of the year, the first time at that level since 2009, even after Friday's 3-percent short-covering rally.
A rush of physical buying in the past week - from jewelry in Shanghai to coins in Germany - may prove to be a dead-cat bounce that is too feeble to offset a broader trend of selling by investors betting on further gains in the dollar, U.S. equities and an improving U.S. economy, according to the survey of more than two dozen analysts and traders.
Regards,
Ted
http://www.reuters.com/assets/print?aid=USL1N0SX27420141109
Comments
I think the article makes some good points.
This is the very reason I recently just opened a starter position in SGGDX as I plan to position cost average this into a full position, over time, within the specialty sleeve of my portfolio.
In review of a recent portfolio Instant Xray analysis I am currently holding about a 5% allocation in the materials sector. In checking some of my reference sites, I am finding that the two most oversold sectors currently are the energy and the materials sectors. Combined these two sectors currently account for about 15% of my equity allocation ... and, in compairing this to the weightings found in the S&P 500 Index (13%) this puts me currently at about a 15% overweight to these two sectors. If I add only one more percent then this will put me at about a 25% overweight to these two sectors when combined.
For long term oriented investors like myself I feel it is better to buy when things are out of favor. So look for me to do a little more buying in funds that have a good weighting in these two sectors. One fund that I own PGUAX has about a 30% weighting to the energy sector and is kicking off about a 4.25% dividend yield and another fund SGGDX is heavly exposed to the materials sector by holding about 70% of its assets in the miners.
I wish all ... "Good Investing."
Old_Skeet