Gold mining stocks have been hit hard over the past several months. However, I believe that gold mining stocks will begin to disconnect from the money-losing performance of the general markets and head higher sometime in the latter part of 2009.
I expect this will be a set-up year for the mania stage of the gold bull market, which I see ultimately unfolding sometime in 2010. During this mania stage, I expect to see masses of investors pining to get any kind of exposure to gold. As this happens, gold prices will begin their next ascent to another new high. This will be the best opportunity to take profits from gold mining stocks in the past 10 years.
Gold mining stocks are where the biggest money is going to be made in the general gold bull market. The returns could be phenomenal and beyond the wildest imaginations of most investors. It may just be the greatest investment opportunity of a lifetime for those who take key positions now in gold mining stocks.
Over the next 24 months, I expect that there will be great periods when gold mining stocks perform exceptionally well. But we need to remember to take profits from gold mining stocks and not get caught up in the story and/or our own greed.