THIS IS BAD: GOLD COULD DROP BELOW $1,041
THIS IS BAD: GOLD COULD DROP BELOW $1,041 by
Gold is in a Vicious Downtrend
I was wrong about the gold bull market continuation… the bull is dead.
Maybe…but I don’t even know if it matters as the sector is already super cheap, so this may be a very short lived moment. Or as I see it, a window of opportunity.
Because let’s face it, the writing is on the wall, gold is headed a lot higher on the world’s stage over the next few years.
Our downside on this is extremely limited, however, it does appear that gold and silver are in for a tough summer.
All signs point to higher gold prices (the inflation numbers, rate hike cycle, commodity lows vs. the S&P 500), but gold continues to fall lower in a downtrend that now has the precious metals making new 52-week lows.
I’m not going to fight the market, nor should you.
We suggest a 5 to 10% physical position of the precious metals and to only hold onto core mining shares. If you don’t know the management team well, sell, and if you own one of the companies we’ve suggested, consider adding to your position on further weakness.
I personally have 3 target companies I want to own more of in the gold and silver space: First Majestic Silver, GoldMining Inc., and First Mining Gold.
The good news in down cycles or bear markets is that you actually get to buy things on sale.
Most people love sales unless it’s their investment portfolio.
The reality is that with anything else we want to own, if it’s on sale, we seize the discount.
But for some reason when a great stock is on sale, it literally becomes an emotional obstacle.
Nothing has changed for the fundamentals of the coming gold bull market:
***Peak gold is evident.
***Its competitor, the dollar, is being pushed aside by major global powers.
***Commodities as a whole are super cheap relative to stocks.
The ugly truth is that our gold stocks could get cheaper.
The good news is we can buy high-quality precious metal stocks on sale.
If you missed the 792% gain on GoldMining (TSX: GOLD) in 2016 or the 620% move from First Majestic Silver (NYSE: AG), here’s your chance to not make the same mistake twice.
EVERYONE wants to sell high, but no one wants to buy low.
Here is our chance to buy low!
Editor’s Note: As someone who appreciates buying deep-value stocks in order to maximize my future profit potential, I will be heavily accumulating shares of First Mining Gold (TSX: FF), GoldMining Inc. (TSX: GOLD), and First Majestic Silver (NYSE: AG) for the next 45 days.