Gold stocks are poised for an upswing.
Just recently, the European Central Bank (ECB) announced a new policy to promote lending and, ultimately, inflation in the Eurozone. The move sent investors flocking to precious metals like gold and silver.
That's because precious metals tend to move in tandem with inflation. As the value of a currency decreases – which is an effect of inflation – the price of precious metals increases. A declining value of a currency means that it takes more of that currency to purchase an ounce of the metal.
Since there is fear of inflation in the United States due to U.S. Federal Reserve action, and there is a specific attempt to produce inflation in Europe, right now there is upward pressure on the price of gold