1-Do we have a valid “bull market” in precious metals and the metals stocks? 

   Yes, but we have had a “bull market” for six to seven years in many precious metals stocks and base metals stocks as well yet many have continued to be in a bear market. Some of our stocks have moved up from 100% to 1000%…many are up 300% to 400% and much more.

 But we must keep in mind that many have not moved- except down and many will later fail. We generally expect a large percentage of our choices to fail. However by choosing carefully, the successes more than make up for the failures.

2-Are the metals such as Gold and Silver still being manipulated?   

Yes, they are primarily manipulated by the professionals; on some days we have seen futures trades that would be equal to more than one month’s world production in gold done in minutes. Keep in mind that they were in reality “paper” trades and not true gold bullion.

3-Are the fundamentals for the metals positive? Yes, Yes, Yes!                                                                                           The demand statistics (contrasting the available supply of gold bullion and silver too)are overwhelmingly strong. We will explain this later with statistics.

4-In 1997 the average industry cost to find one ounce of gold was approximately $12 per ounce, and today the average industry cost is approximately $110 per ounce. Thus Gold is now more difficult and far more expensive to find as well.

5-The brokerages and the banks do not want a bull market in gold/precious metals to occur as it brings with it a bear market in the industrial stock market during which they (banks and brokerages)are unprofitable.

6-Key point! Many reputable economic studies indicate that the U.S. dollar is overvalued by approximately 10% to 15%. As the dollar weakens, gold and silver and their common stocks should rise dramatically as well as happened in the past.

7-Most large financial institutions are underinvested in the shares of gold and precious metals companies. Eventually they will have to invest in them.

8-We have seen for several years some of the largest total amount of “insider selling” of the large industrial stocks (Dow Jones & S&P stocks) in history. Yet at the same time,  we have seen and still see extremely heavy buying of the precious metals stocks by their officers and directors with little selling.

9-The various gold and silver stocks do not all move at the same time……we must wait patiently for many of them.

* Bottom line? it will be soon when we will see many more of the juniors moving up as well.*