For non-Americans, gold is now getting close to being in a new bull market. In the chart below of gold in foreign currency terms we see textbook Stage Analysis transitions, first a Stage 3 top in 2012, followed by a Stage 4 decline in 2013, and a Stage 1 base in 2014. Now gold in foreign currencies is making a Stage 2 breakout back into a potential new bull market advance.
Next gold stocks in foreign currencies is still recovering from the late 2014 low. But notice the massive positive divergence in momentum in the last year or so. In my view gold stocks are poised here to take off like a rocket ship as they are one of the only sectors in the market that have any reasonable value in their valuations. Combine that with earnings growth if gold resumes upward and these stocks will be pounced on by the big money.
Gold Fields is one of the new emerging leaders of the gold miners, it is taking off in a nice Stage 2 breakout while other gold stocks aren’t out of their bases yet.