Gold prices hit new all time highs late Thursday afternoon. Gold futures for August delivery hit $1,252.50 during the trading day and closed the day at $1248.70. That set a new intra-day and a new closing high for gold futures.
Investors, concerned about the inflationary monetary policy and slowing momentum of global growth, have been relentlessly buying gold as a hedge against inflation and as protection against further economic weakness.
The latest round of economic data hasn’t changed the perception that economic growth is not strong enough to boost employment or force the Fed to tighten interest rates. These factors leave the economy vulnerable to shocks in the future, and that’s why investors are increasingly seeking out the safe haven of gold.
But while gold prices are at new highs, gold mining stocks are following with a lag. And that’s creating a timely opportunity for investors to buy gold mining stocks before they report blowout profits on record high gold prices.
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