2B2F : Too big to fail : BKIA & BMPS : Spain & Italy banks

Both banks are too big to fail, both had their government helping them (18B€ for Bankia, 4B€ for Banca Monte Paschi) and both are penny stocks today (max volatility!).

Both will recover in the long run, Banca Monte Paschi (BMPS) will still the oldest bank in the world :-) and the 3rd Italian bank. Bankia is the 4th biggest bank in Spain.

Great investment opportunity (remember Citigroup few years ago and in the 90's, or french Natixis bank in 2007 ? => penny stocks, gov. and big investors helped them to survive and recover from the financial crisis !).

Gold Analysis - Sept 12

 

In blue central banks holdings, and in yellow gold spot price.

Russia aims to increase its official gold reserves to 3000 tons (against 918 tonnes today).  
China, meanwhile, has claimed it will raise its gold holdings to 4,000 tons of gold (against 1054 currently).

US Quantitative Easing vs. Gold price
 

Gold mining companies / gold price ratio

Gold mining companies (in red) are coming back close to gold price.

We still have a low P/E ratio on Gold.

Time to invest in gold.

A pull-back is coming soon, then we will break the $1,800 resistance and  reach the $1,900-$2,000 zone.

Back to the $48, it will be a good opportunity  to invest in Gold mining companies.

Bull market ! Not yet 80...(overbought) (under 30 -> oversold)