As we inch further into the uncertainties of the ongoing global Pandemic, financial markets continue to go through tumultuous fluctuations. Amid this background, numerous participants present in the market have begun to view gold stocks as a sanctuary during these turbulent times. Leading the charge on this front is Investment Newsletters Editor Brien Lundin, who advocates a versatile stance towards gold stocks investment. As reported in godzillanewz.com, Lundin asserts that gold stocks are due for a monumental ascent; he views this as an opportunity for investors to position themselves advantageously before Fear of Missing Out (FOMO) sets in.
To better understand this thought process, it’s essential to comprehend the nature of commodities such as gold. Gold is not only a highly desirable and sought-after commodity in general, but in times of economic or political strife, it is seen as a ‘safe haven’, a secure and fastidious investment. Lundin concurs with this concept and firmly believes that gold stocks are due for a significant rally, primarily due to their low rate of investment at present.
Brien Lundin’s assertion is grounded in the traditional equation of demand and supply. Currently, the gold rate is comparatively low, bolstering the tenet of low supply, high demand. As the globe gradually recovers from the nail-bitingly slow grip of COVID-19, economic activity is on a rapid path to revival. This sets the grid for mounting demand for gold, a potential elevation in its rate, and subsequently, a massive surge in the worth of gold stocks.
Mr. Lundin begins to circle his argument back to FOMO, or Fear Of Missing Out. As the wave of gold ascension begins to crest, investors will rapidly realize the opportunity that emerged from a low gold rate. Like bees to a honey pot, they will swarm in a panicked rush, anxious not to miss out on the impending gold rush. It is this fabled ‘gold FOMO’ that Lundin urges investors to position themselves ahead of.
Furthermore, the opportunity to invest in gold stocks is not just dependent on the recent low gold rate. Lundin sees potential in the gold mining industry, where companies have made significant overhauls to their operational efficacy in the past few years. With improved mining technologies and frameworks, the cost of gold extraction has decreased remarkably. This reduction implies that gold producers are seeing an increase in their profit margins, and consequently, this will reflect a rise in their stock values.
In conclusion, Brien Lundin’s view is that the gold market is a simmering pot that is due to boil over. He propagates a favorable stance towards investing in gold stocks, based on the currently low gold rates, anticipated escalation of gold stocks due to increased demand, and improved productivity in the gold mining sector. He urges investors to tap into this emerging profitable resource before the inevitable gold FOMO sets in, essentially telling them that to maximize profits, they should invest now and reap the benefits later.