The bullish trend in Gold and precious metals is now even stronger. It is a true bull market supported by solid fundamentals! Additionally both technical analysis and cyclical analysis suggest exceptional upside for the precious metals. We cannot call it a “new bull market” either.  If we look back over the last seven years we can see that we have already had large returns for many precious metals stocks and some “juniors” as well. Some stocks are up from 400% to over 1000% from their price bottoms since 2013. Yet few people were paying attention….Lesson? There are always buying opportunities.

Moreover, the ongoing bull market in precious metals stocks should be more all-encompassing including more precious metals companies including “junior exploration companies.” It should continue for several years. At the same time we expect a harsh bear market for most of the industrial stock market.

We foresee regular corrections down in price for gold and precious metals stocks which are to be expected. Those corrections and moves down are also a normal part of a bull market.

We have just experienced a positive six plus years for many metals stocks. And it was an advantageous time to invest in stocks that were exceptionally undervalued. Also investors were able to accumulate them without chasing them or competing with others bidding for the shares.  Many were literally “on sale” and as expected few investors took advantage which is always the case. Historically, the majority of the public never invests at price bottoms; they never have and never will.

             “When prices are high, they run to buy…When prices are low, they let them go”

Valuations are important. Using various gauges of value, gold and silver stocks and many precious metals stocks have been selling at some of their lowest valuation levels in history and many stocks still languish at the low valuations. In-depth research and analysis should be well rewarded.

A major impediment in the gold market has been the U.S Dollar’s strength as a strong dollar generally constrains the gold price. Basically, the strong American dollar which has been estimated to be 10% to 20% overvalued on the basis of proper valuation would justify gold at $2200.            

We do not expect timely precious metals advice from large American brokerages and Banks as they have proven themselves incapable of offering timely advice. Those institutions are often quoted in the media but rarely are accurate.  

Investors in precious metals companies require exceptional patience to sustain severe percentage declines and should be willing to dollar cost average.

China is probably the most important participant and factor in the gold market.

Failure? When we choose or invest in gold exploration companies we must understand that of all the stocks that we focus on, over half will fail. It is extremely difficult to find adequate resources that will generate gold production and exploration is very expensive.