Posted: 25 Jun 2014 12:54 AM PDT

I could probably give you several arguments for why gold is on the move right now. Negative interest rates in the Euro Area. Continued bond purchases by the Fed. Japan's application of Abenomics. The Chinese shadow banking system. Insert theory here. It's fun to sit back and theorize why the base metal is on the move recently, but it's even more fun to sit back and watch your investment account's value go up day after day. So if you're all with me, let's go have some fun.

Gold Futures on the Move

Today, gold futures traded in the $1320s for most of the session. This is a far cry from where we were trading just three short weeks ago right about the $1250s. Looking back to the all-time highs skews your perspective of the move we are in now. I'm not here to make an argument for $1800 an ounce. Being a little more conservative here can still allow us to make some big bucks betting on a much smaller move.

The last time gold approached $1400 was March 2014. That marked the end of a run for gold that began the last day of 2013 with prices below $1200. The run took three short months and gold moved over $200 from the start. Using this crude and somewhat elementary observation and applying it to our current situation that puts gold close to $1500 an ounce by September.

But let's dig a little further into the technical picture. When gold bottomed to end 2013, the price bounced off the same support level where it caught a bid in July 2013. The run to the upside stalled shy of $1400 and then pulled back for three months until it bottomed out the beginning of June 2014. So you have a series of lower highs on this drop down.

But now, coupled with the lower highs we have hit a higher low. The June 2014 support just below $1250 came in $50 higher than the historical support at the 2013 lows. In addition, the bounce came while the stochastic indicator was well oversold and had a bullish crossover. Gold is still riding this bullish crossover higher and now is testing the April 2014 highs. A break of that level puts $1400 in our sights. With gold firmly above the 25 day moving average shifted by 5 days there is an established bullish trend.

There are several ways to play the gold trade. Obviously you could go out and buy gold futures. Another idea is to buy the gold ETF, SPDR Gold Trust (GLD - ETF report) which tracks the price of gold. I offer another way, buying gold mining stocks. Gold prices increasing should be good for the gold miners. But which gold miners should you take a look at? How about miners that have had positive earnings estimate revisions and have recently surprised earnings? In other words, use the Zacks Rank to find a few nuggets.

Agnico Eagle Mines (AEM - Analyst Report)

Agnico is a Zacks Rank #1(Strong Buy). Last quarter, the company reported record production of 366,421 ounces of gold with total cash costs of $537 per ounce. This strong Q1 cash flow allowed Agnico to repay $80 million of its revolving credit facility. This year the company expects to exceed the upper end of production guidance range and do better than the lower end of the cash cost guidance range.

Nine analysts have raised their earnings estimates for the current year, causing consensus to rise from 60 cents to $1.17 per share. Next year's picture looks equally as impressive with eight analysts raising their numbers, bringing consensus up from 78 cents to $1.22. The upward revisions come on the heels of a quarter where AEM beat estimates by 35 cents per share, reporting 60 cents versus expectations for 25 cents.

AEM seems to be breakout out after jumping through its 52 week high last week. Since mid-April the stock has run up from under $27 per share to nearly $38. Now the stochastics are in an overbought position as the stock has gapped up to new highs. Waiting for a small pullback may be the way to play AEM as the gap last week may be retested.

Pretium Resources (PVG - Snapshot Report)

British Columbia-based gold miner Pretium has been the subject of takeover rumors recently. The Zacks Rank #2 (Buy) has hit it big with its Brucejack project. Some analysts believe the project could produce over 300,000 ounces of gold per year on average at a cash cost of $508 per ounce. It's this high-grade gold resource that has Pretium in the sites of other miners as a takeover target.

PVG has surprised analyst estimates to the upside three of the last four quarters, albeit by an average of 1 cent per share. Current estimates call for a loss of about 13 cents this year compared to previous estimates of a 16 cent loss. Just in the last week an analyst has come out and raised current year and next year estimates.

While this stock may have been off your radar, it's certainly on someone's map. In late November 2013 PVG reached a low of $2.70. Since then it has nearly tripled to today's price just a shade below $8. It's trading well above its 25 day moving average shifted by 5 days (25x5) which sits down at $7. Breaking out above $7.50 was a key technical milestone and now the August high just over $10 becomes the next line in the sand.

Bottom Line

Gold is on the move again and investors looking to cash in on the trend can look to the miners for ideas on how to make money. These two stocks offer up some great upside potential should the base metal continue to run higher. Both have good technical pictures and are in the good graces of our Zacks Rank.

The Best Types of Gold to Buy Now - Money Morning

Posted: 23 Jun 2014 07:23 AM PDT

Investing in gold is a great way to diversify investment portfolios, hedge against a financial crisis, and even protect against inflation. But with so many different types of gold to buy, finding the right gold investment can be a difficult task for retail investors.

Money Morning's Resource Specialist Peter Krauth is a 20-year veteran of the resource market with special expertise in precious metals and gold, and he recently gave Money Morning readers a snapshot at some of the best ways to invest in physical gold.

Best Types of Gold Coins to Buy

One of the most popular types of gold investments is gold coins.

There are numerous types of gold coins traded throughout the world, and they all have different weights, fineness, face values, and intrinsic values.

"When looking to buy gold coins, it's usually the gold content that differentiates various types," Krauth said.

gold coin chart Certain gold coins contain different types of metals, often copper, which add to the durability of the coin. That's why not all one-ounce (1 oz.) gold coins can be compared directly. They all may contain an ounce of gold, but they won't necessarily weigh the same.

For North American investors, gold coins are usually narrowed down to the four most popular: the Gold American Eagle, the Gold American Buffalo, the Gold Canadian Maple Leaf, and the Gold South African Krugerrand.

"Both of the American coins typically command somewhat higher premiums than either their Canadian or South African brethren, thanks to their level of recognition in North America," Krauth said. "Nonetheless, the Maple Leaf and Krugerrand are both among the most popular coins worldwide."

Each of these coins is produced by their national mint, and all except for the Krugerrand carry a face value of $50. Those three are guaranteed by their respective governments for their content and purity.

While their face values are all $50, their intrinsic value is actually much higher. Currently, the Gold American Eagle can be purchased through the Canadian metal dealing company Kitco for just over $1,372. The Gold American Buffalo is currently valued at $1,375, while the Gold Canadian Maple Leaf is $1,355.

Even though the Gold South African Krugerrand has no face value, a one-ounce coin is currently worth $1,351.

These coins can also be purchased in 1/10-ounce, 1/4-ounce, and 1/2-ounce amounts. Additionally, these gold coins are widely traded, meaning they can be sold easily if the need arises.

But gold coins aren't the only popular option when it comes to buying gold...

Buying Gold Bars

Another popular way of investing in gold is purchasing gold bars. Bars come in various sizes, including one ounce, 10 ounces, 10 grams, 100 grams, and one kilogram.

The most common type of gold bar is called "good delivery," which is a gold bar that meets numerous requirements set by the London Bullion Market Association and weighs 400 troy ounces, or 12 kilograms.

"One very significant characteristic here is to consider whether the bars are 'good delivery' or not," Krauth said. "Essentially, good delivery bars are sourced from a reputable refiner who is on the 'good delivery' list of the industry standard London Bullion Market Association (LBMA) and the New York Mercantile Exchange (NYMEX). Bars bearing the stamp and fineness of these refiners are typically readily accepted by gold dealers, allowing the seller an easier transaction and higher value."

Buying gold bars is a great way to buy large quantities of the precious metal. Like coins, gold bars can be traded easily, especially if they are good delivery. Moreover, gold bars usually have lower price premiums than coins.

One downside - gold bars do typically have a higher rate of forgery.

But that shouldn't dissuade investors from buying gold bars, because Peter Krauth has created a guide for determining whether gold bars are counterfeit.

If buying gold bars and coins doesn't appeal to you, there are still other ways to invest in the precious metal...

Other Ways to Invest in Gold Now

One area where Krauth sees huge profit opportunities in 2014 is in gold mining stocks.

As gold prices dipped in 2013, many mines were forced to shutter operations. Now that prices have rebounded, the strong gold mining companies that survived are set to cash in.

"The best mining companies met these challenges by controlling and lowering costs, focusing on the most viable projects, reining in capital expenditures, and even divesting suboptimal assets," Krauth said.

One gold mining stock Krauth has been recommending in 2014 is Goldcorp Inc. (NYSE: GG). GG is a major mining firm that operates, explores, develops, and acquires precious metal properties in Canada.

GG is up 24% year to date.

"Goldcorp is one of the world's top gold miners," Krauth said. "Over the next three years, gold-equivalent production for the company is expected to grow by 44% through organic growth and the startup of two new mines, Cerro Negro in Argentina and Eleonore in Quebec, Canada."

For those looking for a broader play on the gold market, there are also numerous gold ETFs.

One of the most popular is the SPDR Gold Trust (NYSE Arca: GLD), which was founded in 2004 and is designed to mirror the price of gold.

GLD has total net assets of $31.9 million, total outstanding shares of 262.1 million, and a market capitalization of $31.7 billion. It has a price-to-earnings ratio of 17.52.

Year to date, shares of GLD have climbed 9%.

Money Morning recently detailed for our Members the importance of owning gold now - and delivered a two-part "cheat sheet" that outlines the right amount of gold for your portfolio. You can get that gold investing guide - for free - here.

Do you own any physical gold or are you planning on buying any? Join the conversation on Twitter @moneymorning using #Gold.

Why this top technician recommends buying gold now - CNBC.com

Posted: 24 Mar 2014 09:53 AM PDT

Gold suffered another tough session Monday, dropping nearly 2 percent following a bad week. But one of the most respected technical analysts on Wall Street says it's high time to buy in. Indeed, Sterne Agee chief market technician Carter Worth predicts that gold will rise about 15 percent from current levels.

After a painful 2013, bullion was finally finding some strength in the beginning of 2014. The key, for Worth, was that the metal was able to turn around a grim trend.

"When you're cascading, you make a low and then you violate it. And make a low, and then violate it. Make a low, and then violate it. Low after low," Worth said Friday on CNBC's "Options Action." "But then, we have this massive low in June, as everyone knows, and again, we have a rally. But this time, we don't violate. So we have a well-defined double bottom."

Buying Gold | Gold Stocks To Buy Now - June 25, 2014 - Zacks.com | News2Gold

Buying Gold | <b>Gold</b> Stocks To <b>Buy</b> Now - June 25, 2014 - Zacks.com | News2Gold

Buying Gold Bars

Other Ways to Invest in Gold Now

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