GOLDNEV RESOURCES INC V.GNZ

Oil and Gold Seasonal Stategies.

[rich471]

These are just my opinions and thoughts.

I started investing in gold stocks about 8 years or so ago when it was around $300/oz and had one junior fail on me and another one nearly because of production costs. Production costs are a problem for gold producers. I am very bullish on gold long term, however as a general rule during the summer months gold buying becomes stagnant. There is a saying about gold stocks you all have probably heard before.

 “Sell in May and go away”

As a general rule although gold was tied to oil a bit last year as crude rocketed, markets expected companies to have a difficult time with costs due to rising energy prices and other issues of course hence sold equities along with every thing else and bought gold.
 

You will find (as a general rule) for the most part that oil and gold trade conversely to one another.
 
When gold peaks oil is at its seasonal lows. Gold peaks until spring (sags) and then rebounds in the fall. Oil starts declining in the fall (late summer) and starts to rise in the spring. I held off on buying gold stocks this year until late Nov. early Dec. because of the market free fall, but a good time to buy gold is late summer. You should start to focus on oil and gas producers now even during the turbulent times. Also as a general rule I am staying away from exploration plays only but have always focused on some production, or at least near term.

Sell gold by April though. In fact you should be forming an exit strategy now. Make sure you take profit by then.  I repeat though I remain very bullish in both gold and oil long term, this is just my opinion.

rich47.