Our analysis which includes cyclical, fundamental and technical analysis as well as considerable research of many gold mining and exploration stocks is suggesting that we are on the edge of a powerful bull market in gold stocks. We should note that since the summer of 2013, many mining stocks have quietly made their bottom and some are up 100% to 200%. To think that investors can sit and wait for an ideal time to “load up” with their targeted gold and silver stocks of choice borders on delusional. So many stocks have already seen declines of 80% to 90%, thus accumulation should be considered such as “dollar cost averaging.” If you examine the screens, you will find that there are very small volumes of offerings of mining stocks showing on the screens. Waiting for the “ideal moment?” There is no such thing.
The fact is that many mining companies and particularly junior exploration companies are extremely undervalued and overlooked while selling at “fire sale” prices. Their “undervaluation” may not make sense, but in the world of investing, many things do not make sense. Undervaluation should be considered as nothing less than an exceptional opportunity to invest while stocks are “on sale.” Few investors ever take advantage of the sales, it is just human nature.
We have consistently stated that to have a positive market in the mining stocks and many commodities, we need a bear market in the industrial stock market. Our analysis suggests that the bear market will be commencing soon. Officers and directors at the major companies obviously feel the same way as over the last five weeks, they have sold over $2,000,000,000 ($2 billion) of their own personal shares while buying approximately $120,000,000 ($120 million)of their own companies’shares. Quite a contrast!
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