TheDailyGold: Gold Stocks Performance Following Market Crashes…
Good morning to you. |
On a valuation basis, it was 1942 for the gold stocks. But the sector did not quite have the fundamental catalyst needed for the start of a sustained, multi-year bull run. Now it has the catalyst in monetary and fiscal policy not seen since the 1930s.
A stock market crash and bear of at least 35% is reliably one of the best catalysts for gold stocks. Read about it here.
The article is more thorough but if you prefer the spoken word and a video commentary, then click here.
To hear the spoken word from someone else, consider my interview with Greg Weldon. He argues why Covid19 is not a catalyst but an accelerant for Gold.
Greg is also offering a 30-minute commentary on Gold for $30, which goes towards the first month of a membership to his Gold Guru service. Click Here to get the 30-minute video. (I’m passing along good work, I receive no commission).
Silver is going to be a key indicator given that it will perform well if inflation expectations rise but will underperform if the bear market intensifies.
It is looking more and more like the crash was a false breakdown or bear trap. Silver closed below $14 for only one week and did not close the month or quarter below $14. The next strong resistance is at $16.
For the non-producers we assessed their potential over the next 2-3 years and we were not counting on much more than $21 Silver and $1800 Gold.
Right now you can buy a few high quality junior exploration companies that have 5-bagger potential. I’m talking about cashed up companies that have management teams with a track record.
There are some where you could take a little bit more risk but gain more than 5x potential. One is going to be a producer likely in 2022 or early 2023. It has well over 10x potential. There are a few others that with exploration success coupled with those metals prices that could be 10 baggers.
“I am simply a pure market-timer for a broad basket of gold stocks and precious metals. Jordan, on the other hand, has provided superior STOCK-PICKING abilities over the longer-term. I am familiar with most gold stock subscription services over the past 30 years. I rarely provide endorsements of any kind, but Jordan’s ability to analyze individual gold/silver stocks has been among the top 5 services over the past decade. First and foremost, I respect his integrity.
-Jeffrey Kern, SkiGoldStocks.com
Thanks for reading. I wish you all great health and prosperity!
-Jordan Disclaimer: This newsletter is intended for informational and educational purposes only and should not be considered personalized and individualized investment advice. Investment in the precious metals sector contains significant risks. You should consult with an investment advisor and do your own due diligence before making any investment decisions. This email may contain certain forward looking statements which are subject to risks, uncertainties and a multitude of factors that can cause results and outcomes to differ materially from those discussed herein. |