Hold PMs into a Market Selloff

Source: GoldSeek, Peter Cooper (6/9/11)

"A buy-and-hold strategy makes more investment fortunes than manic trading."

GoldSeek, Peter Cooper

It may be counterintuitive, but holding onto precious metals into the growing selloff in financial markets may make sense for many investors. Becoming a trader and hoping to cash out now and buy back later at lower prices is all very well in theory, but it may turn out badly in practice.

The biggest risk for the non-professional trader is not that prices will suddenly shift higher after you sell, but rather that you will be too cautious about buying back and that markets could move quickly to the upside.

If that scenario follows—and it's one highlighted recently by Jim Sinclair, who correctly forecast the current gold price a decade ago—an investor who sells now is left holding cash at a point when gold prices might well take off to the moon. Sinclair sees gold going to +$12,500/oz.

The buy-and-hold strategy has made more serious investment fortunes than manic trading, which at its worst is nothing more than casino-style gambling. Investment timing is seldom easy; so why do it if you know the long-term direction of an asset?

However, there's a particular reason for being confident that any downturn in gold and silver prices will be short term this time. Global money-supply expansion is out of control and such an inflationary outlook always favors precious metals as a money with a fixed supply unless interest rates are raised above inflation.

So, if assets like stocks, real estate and bonds are sold off, where does the money go? It'll be converted into precious metals, and that inflow could come very suddenly, catching those who have sold their gold and silver off guard.

Gold Explorer Highlights 2020 Achievements and Outlook
Source: Streetwise Reports (01/29/2021)

Magna Gold Corp.'s CEO Arturo Bonillas issued a letter to shareholders outlining the firm's business and financial accomplishments in 2020 and its strategy and outlook for 2021.

Cabral Gold's channel samples at the JM target provide "further evidence that numerous high-grade veins occur within the Cuiú Cuiú district."

Explorer Completes Phase 2 Metallurgical Work for Palladium-Copper Project
Source: Streetwise Reports (01/28/2021)

Generation Mining intends to wrap up the feasibility study on Marathon this quarter.

Silver Firm Reports Q4/20 Processing, Production Numbers from Mexico Project
Source: Streetwise Reports (01/28/2021)

MAG Silver's joint venture project Juanicipio produced 230,000 ounces of silver during the quarter ended Dec. 31, 2020.

Explorer Reports High-Grade Gold-Silver Intercepts at BC Golden Triangle Property
Source: Streetwise Reports (01/27/2021)

Scottie Resources Corp. advises that the target remains open in most directions.

Golden Arrow Resources Out Exploring Again After COVID-19; Hits High-Grade Gold at Tierra Dorada in Paraguay
Source: The Critical Investor for Streetwise Reports (01/27/2021)

The Critical Investor explains why he believes "investors have an interesting opportunity to invest in a pretty derisked, undervalued and experienced explorer with three chances for success."

Junior Mining Sector 'the Best Value in the Space'
Source: Streetwise Reports (01/27/2021)

The StreetSmart Live! Broadcast on Jan. 26, 2021, focused on metals and why now is a good time for investors to be looking at them and the mining space. John Newell, independent analyst and portfolio manager, and John Feneck, mining sector expert and president of Feneck Consulting, addressed the status of the current metals market. CEOs of the three metals-focused companies comprising the Metallic Group of Companies—Group Ten Metals, Metallic Minerals and Granite Creek Copper—discussed their projects.

Shenanigans Abound: Gold, Silver and Cryptocurrency
Source: Michael Ballanger for Streetwise Reports (01/26/2021)

Sector expert Michael Ballanger explores the generational trends currently shaping investment markets, including the precious metals.

MMT Survey Helps Explorer Identify New Large Target at Ecuador Property
Source: Streetwise Reports (01/26/2021)

Aurania Resources reported that data from an ongoing Mobile MT Survey identified an extensive target at Tsenken at its Lost Cities - Cutucu Project in southeastern Ecuador.