As foolish as it may seem, I am stressing a strong buy opinion on Gold. Read below to find out why.
Randgold is a cyclical company in that it depends heavily on gold prices, and gold prices are in turn weighed on by the price of oil. With the recent decline in oil prices, we have seen a huge variation in the share price of GOLD. However, this does not make up for the fact that GOLD has been in an uptrend since mid-2004, and is overdue for an upswing.
The low price of Randgold stock is a perfect opportunity to dive in for some cheap accumulation of shares. Even with the frightening highs and lows, GOLD has put on $3 per share over the past three months, and has a long-term resistance of around $23 - not a bad place to bump into if you bought a load of shares at $19 or $20.
There are still plenty of shares to be bought before GOLD reaches the saturation point and smart investors dump their shares. Right now, looking at the long-term charts, GOLD is in a trough between sell-off peaks. Given time and a continued faith in the company, this stock will provide an excellent opportunity for profits.
$20.25 (10/10/06)
