LAS VEGAS, NEVADA, Feb. 16, 2010 (Marketwire) -- Citigroup Inc. (C) reports gold may rebound and advance north of $1,160 an ounce, according to a technical analysis report released yesterday. This gold report, like many others, shows gold meeting resistance at the $1,100 an ounce mark. In our opinion at PowerPennyStocks.com, this signals that the rubber has hit the road, and will push gold to climb. The technical report comes on the heels of several other another positive statement issued by Citigroup, including future demand for gold likely to surge in China and India.
What does this mean for the mighty US and Euro dollar?
Many investors are buying gold on the claim that it will hold its value as the dollar finds it feet. Steve Pearson, head of G-10 currency trading at Bank of America Merrill Lynch, London was recently quoted as saying "The consensus was not anticipating a strong dollar through the first half of 2010".
So who is buying gold?
John Paulson, the investor who made billions by pegging the housing bust and credit crisis, invested $1.3 billion for an 11% stake of AngloGold (adding to his gold position with a significant stake in Kinross Gold). Hedge fund manager David Einhorn (the gentleman who predicted the collapse of Lehman Brothers), recently said he bought gold - for the first time.
What does this means for the Average Joe?
Take a look at penny stock companies like Affinity Gold Corp (OTCBB:AFYG). Less than a month ago AFYG was sitting at $1.50 per share. We've watched this golden boy steadily rise with the release of their 43-101 technical report and other great news. It closed last Friday at over $1.88. That's a golden ROI story - a 25% increase in your money.
How does the normal investor see a 100% return on gold? Read the AFYG Inside Report
With some newsletters pointing to a $4.00 per share short term target, it looks like AFYG is heading there in a hurry. And they are not the only micro cap mining company that is showing some great investment opportunity in the OTCBB gold mining sector.
With more good news expected, AFYG will continue to generate significant investor interest in the company. Our recommendation is to keep AFYG on your radar and watch this week's reactions across the web as the stock continues to move north.
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