The stock market’s main function is to extract the most money from the largest possible amount of people. Two years ago the price of gold was over $1,700 per ounce and the question was when, not if, investors should be buying dips.
Since then it’s been nothing but pain for gold and almost all of the companies in the gold complex. The SPDR Gold shares ETF (GLD) has fallen 24% and the Market Vectors Gold Minters ETF (GDX) has been more than cut in half.
Suddenly in 2014 Gold has regained its mojo, bolting more than 7% higher while equities struggle to stand still. According to Ryan Detrick of Schaeffer’s Investment Research the rally in gold is just getting started.
