Goldman Sachs is Bullish on Gold
Goldman Sachs recently came out with a bullish call on gold. Although many gold bugs and conspiracy theorists are calling for $2000 per ounce. Goldman’s $1300 target within 6 months should still be positive for gold stocks. Mainly because there are only four or five Wall St. firms that have the ability to change short term investor sentiment. For obvious reasons the boys at GS fall into that elite category.
The nine page report by Goldman states that gold is oversold and could benefit from quantitive easing. This potentially makes gold the main market moving catalyst again. Recently, oil has taken over as a guide to S&P 500 movement. The $80 level on oil has been a gauge for many traders decisions on whether to go long or short.
Gold going higher potentially offer penny stock traders multiple opportunities to make short term gains on the OTCBB. The price of the yellow metal can influence penny stock prices like no other commodity, mainly because of the large presence of mining stocks on the OTCBB and Pink Sheets.
For instance, Goldman also recently made a bullish call on coal stocks despite outperforming the market so far this year. They highlighted Peabody Energy (NYSE:BTU) and Massey Energy (NYSE:MEE) and a few others. Did this influence penny stocks ?
Not really, there may have been a stray recommendation here or there by a penny stock news letter, but there were no huge gainers to speak of.
This is because nothing attracts penny stock and microcap buyers like rising gold. The key is where to find these stocks that can potentially create massive gains. At this point a watch list should be put together and in addition to buying a large cap name in the gold space there is always room for a speculative name too. So stay tuned for a potential release of a gold stock from us. Hopefully we can ride the coat tails of the most prestigious firm on Wall St.
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