Here Are Trades To Play New Gold/Commodity Bull Market


Image Source: PixabayLast week, the price of gold closed at a new all-time again this year, despite the fact that many don’t seem to care.You can see this in the search data for gold on Google. Google trends shows that it has not gone up at all despite the big rally to new all-time highs.The interest in gold among people is still lower than it was to start the year. All they want to hear about is Bitcoin.There are now thousands of Bitcoin enthusiasts out there promoting crypto, and millions of people who want to hear the reasons they give them to believe that Bitcoin is changing the world – when no one uses it as money and it has failed as a store of value, but they still tell people that they can get rich quick with it.People like to buy into markets after they have gone up a lot and for months, and very few get in at the start of a move. That’s why just about no one was bullish on the stock market in the first few months of 2023, and why the only ones bullish on gold now are the few that have been following it already for years.When bull markets start, many simply don’t believe it’s happening. And so you have Bitcoin pushers saying the gold rally isn’t real, too. The best time to buy and invest something, though, is not when everyone is hyping it up, but at the end of a stage one basing process or at the very start of a stage two bull market.Here is the chart for gold.As I wrote the other week, gold is part of an overall commodity complex, and when gold starts a new bull market, it is typically a sign that other commodities are going to do so, too. Gold is usually the first commodity to go up.Here is the CRB commodity index.Silver has not broken out yet, and it is still below its $26.00 resistance point.A simple trade idea could be to buy silver below $26.00 and accumulate. Anyone can do that. Anyone can spend $25 and buy an ounce of silver.Here are some other ideas for you.One ETF I bought is BCIM. It is an industrial metals ETF that holds copper, aluminum, lead, nickel, and zinc. It should be noted, however, that this ETF only has a market cap of $22 million. Hardly anyone has bought it, so it doesn’t see much daily trading volume.However, as you can see, it is in a stage one base, with its 200-day Bollinger Bands tightening. A weekly close above $22 for this ETF would complete the base and could signal the start of a stage two bull market for it.Mining stocks typically go up more than gold in a gold bull market. The GDX gold stock ETF has a similar chart to that of silver.I own a position in GDX. As for other sectors in the market, if you may recall, I wrote about utility stocks back in December. That sector is breaking out now too, as you can see from the XLU ETF.One individual utility stock that I own is Dominion Energy (D).Dominion Energy is paying a dividend of over 5%. Another utility stock I own is UGI Corp (UGI).UGI pays a dividend of 6.11%.This is a sector that very few people are interested in, perhaps because it sounds boring to buy utility companies. They aren’t involved in AI or crypto, the two trends of the moment. Instead, they have stable earnings – because people have to use energy all the time.Utility stocks tend to go up at the end of interest rate hiking cycles and continue to go up as the Federal Reserve lowers interest rates, because the stable dividend payouts become attractive in such times to investors. Utilities is a defensive sector that historically goes up at the end of part of a bull market and during a bear market.More By This Author:Gold Hits New High As Federal Reserve Turns Super Dovish To Set Stage For Coming Bubble BustThe Federal Reserve Interest Rate Projections Are Not Working Like People ThinkThe Gold Breakout Signals Start Of A New Commodity Bull Market, And Silver Prices Are Going To Explode

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