In God We Trust - Everyone Else Use Gold

Demand drives the price of any product. But there are also many events that can drive demand. Needs drive demand. Wants drive demand. Fear can also drive demand.

Fear is the key to this blog on gold. We recently blogged about 2 gold related companies ( Yamana Gold - AUY and Western Goldfields - WGW ) and both companies have seen interest in the last few trading sessions. But why? The price of gold is not soaring as it did a few months ago nor are there a lot of analysts currently pounding the table to buy the precious metals. In fact most of what you read suggests this is not the right climate to be in precious metals.

I differ with those who say gold is not something investors should be looking at. Like companies in all sectors there are precious metal companies with good potential and then there are those which are nothing more than pr salted mines. And sometimes it is hard to sift through all the hype to find solid companies.

At 2oversold.com we do not make recommendations on any particular company but we do blog about ones that we believe might be worth a look. We think that gold companies are going to start moving up in quiet trading over the coming months as market conditions worsen. The two companies mentioned above are worth a look but I am sure there are many others that are set to outperform the market.

Folks there is a lot of fear with the individual consumer. And I think the recent moves in some of the precious metal stocks are a direct result of the global economic crisis we are experiencing. Until the world economies find a better footing, I expect to see these stock continue to move.

2oversold.com is a blog for the individual consumer and private investor. We are not experts in the markets nor do we make any recommendations of any company. The companies we blog about are discussed for the purpose of this blog only and should not be considered as investment advice.