The best gold stocks to buy right now all depend on what you’re looking to accomplish. Are you looking to hedge investments? Are you going to swing trade gold in a time of uncertainty? In the event that there is the need to know where to invest in a bear market, come up with a plan. Chaos, the political climate, and news can affect the stock market.
When this happens, traders and investors turn to safe-havens. Commodities, such as gold, tend to be the most popular. The reason for this is that they’re seen as safe. When the markets and the dollar are falling, gold tends to move in the opposite direction. Hence its popularity.
Table of Contents
What Are the Best Gold Stocks to Buy Right Now?
Traders are always looking for the best stocks to buy. This includes the best gold stocks to buy right now. Trading companies that mine for gold is like having your own gold mine. However, mining is expensive. Gold is hard to find and there is a limited amount on the earth. It’s not like the dollar bill where you can just print more if you need it. Instead, gold is rare. The value of gold is based on how rare it is, the ability to resist corrosion, and its appearance. For this reason, it’s used a lot in jewelry and as currency.
There are many people who like to own physical gold and not just the companies that mine for it. They see it as a safe bet to have on hand if there comes a time the dollar is null and void.
As a result of this, be careful of people who pump gold. You might think that’s crazy. Don’t pump and dump schemes stay within small-cap stocks and the penny stock sector? No, they don’t.
Never place a trade based on someone’s recommendation without doing your own due diligence. There are people who continue to tout the fall of the dollar and the rise of gold.
Trade the Patterns
The best gold stocks to buy right now are going to be the ones with the best patterns to trade. As stated earlier, there are people who would like you to believe the dollar is losing its value and gold is going to the moon.
The best way to avoid getting caught in a trap is to look at the charts. Charts don’t lie. Support and resistance play a major role in trading. Patterns along with candlesticks form those key levels.
Seeing morning star patterns or three line strike candlesticks patterns should have an impact on how you trade. Look at the angular support and resistance of triangle patterns.
Is gold trapped in symmetrical triangle patterns or about to break out of ascending triangle patterns? If you can’t see these patterns, your trading will suffer.
In essence, gold stocks should go up when the market or the dollar goes down. However, that doesn’t happen 100% of the time. If that’s what you’re expecting, you can place bad trades.
Technical Analysis
The best gold stocks to buy right now not only depend on patterns but also technical analysis. Moving averages provide equilibrium to stocks as well as support and resistance.
Moving average crossovers also provide strong buy and sell signals. You can also use the ichimoku cloud as a way to know if gold is a good buy.
The RSI is used to tell you when a stock is overbought or oversold. It also shows the strength of a trend. For example, when a stock is overbought, that doesn’t mean it’ll correct right away.
Sometimes the RSI stays overbought for a while. This confirms that the current trend is strong. However, it’s also making you aware that a correction is coming.
Check Out These Gold Stocks
The best gold stocks to buy right now are the stocks with the most promise. The company known as Royal Gold Inc. (RGLD) is just one of those stocks. This company is a little different from most.
It deals with royalties and loans capital to mines that need dirt movers. So it doesn’t have all the overhead cost a normal mining company would. Instead, it has agreements with mines all over the world.
Barrett Gold Corporation (ABX) is a mining stock that works with Royal Gold Inc. ABX is considered to be the best gold stock you can buy right now. It has the most production and the smallest overhead.
Bottom Line
The best gold stocks to buy right now are the stocks that give you the most profit potential. The best way to find that is to look at the charts. Trade the patterns. When you’re trading what you see, you’ll make better trades. Don’t trade off emotion. That’s the best way to make losing trades; even with gold stocks.
