Expecting Epic Gains in Gold

Source:

‘Epic’ is what I expect the gains to be in the gold sector over the next 1-3 years. With producing miners finally achieving the coveted ‘value’ label and junior and exploration gold stocks selling in some cases below cash on hand with properties being looked at by the market as liabilities...

...The most recent target for HUI is 150 and it came within .27 of that on Friday before turning up and leading gold higher. But this could simply be a pause to build a bit of hope before the next dunk. The broad market is in danger of new lows (into capitulation) which could suck the precious metals stocks down yet again. But with each hard down I become more bullish. As an investor. I realize that ‘investor’ can be another way of saying ‘bag holder’, but that is not the feeling I have right now. I hold this precious bag tightly because nobody else wants it and the nuggets in there are literally being given away, so I continue to pick up these discarded nuggets with each decline.

The title of this piece is ‘Epic’, and that is what I expect the gains to be in the gold sector over the next 1-3 years. With producing miners finally achieving the coveted ‘value’ label and junior and exploration gold stocks selling in some cases below cash on hand with properties being looked at by the market as liabilities (in that they need to be funded), folks, you know what we have here don’t you? Mania. Downside bearish mania (along with margin and redemption related forced selling).

There is a good chance that this is the play that people wait a lifetime for, but after the fact will bemoan their inaction due to fear. But the public and its policy leaders who all kept their heads buried deep in the sand during the cyclical bull market have now done the predictable 180, worshiping fear much as they worshiped greed just a short while ago in what now seems like a different life. Mania is mania and it works both ways. Smart people will fade mania...

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