Currently the gold stock indicator is below the long-term buy indication. This means that those who are interested in long-term holdings of gold stocks should be in an accumulation phase.
Naturally, we don’t know how much lower gold stocks can decline, however, from a historical perspective gold stocks are considered a buy at the current level and below.
We believe that investors in gold stocks should build in at least -20% to -50% downside risk when buying gold stocks at the current level.