The Current Fall in Gold and Silver Prices Will Proved to be a Lull in a Strong Continuing Uptrend That Started Last YearJuly 26th, 2016
Currently, the prices of gold and silver assets have been taking a breather, so if you have been seeking a time to purchase, another opportunity will likely materialize between right now and the end of the summer. The time to buy assets are not when they are rising and in a frenzy, as many people mistakenly do when they commit the cardinal sin of chasing assets higher, but when asset prices are falling, are on sale, and when interest in them is declining.
As an example of some of the tremendous gains that junior gold and silver stocks yielded during the gold bull run of the 1970’s, Lion Mines appreciated from $0.07 a share in 1975 to $380 a share in 1980 for a legendary 542,000% gain. Mineral Resources gained 69,000% during this comparable investment period. More recently, in 2004, Afriore Limited rose from $0.29 a share to $8.72 a share for a 2,906% gain, Aurelian Resources rose from $0.25 a share to $10 a share in just seven months in 2007 for a 3,900% gain, and Kodiak Exploration rose from $0.35 a share to $4.50 a share in 2007 for a 1,186% gain. Earlier in this current gold and silver bull, at SmartKnowledgeU, we’ve already provided buy and sell strategies for a junior mining stock that gained more than 1,000% in a single year. In 2010, of 21 junior mining stocks we suggested buying and selling at specific prices, here were the returns in a single year:
+457.14%, +346.22%, +189.42%, +221.50%, +119.23%, +65.05%, +70.51%, +72.06%, +154.34%, +84.07%, +73.78%, +97.07%, +97.90%. +88.68%, +80.08%, +77.78%, +68.72%, +45.16%, +8.97%, -11.70%, -23.52%.
Eighteen of 21 were huge winners, and only two suffered losses.
During 2015, a time period when junior mining stocks and the HUI gold mining index crashed, here were the returns of the major, intermediate, and junior mining stocks we marked as our favorite stocks, based upon our buy and sell price points:
+121.0%, +75.6%, +64.9%, +60.1%, +53.3%, +46.4%, +40.3%, +35.1%, +32.4%, +26.3%, +24.7%, +18.1%, +17.8%, +15.8%, +12.9%, +15.2%, +13.4%, +5.8%, +3.6%, -1.3%, -15.7%, -3.6%, and -3.3%
Remember, we accomplished these returns in our Platinum Membership during a year in which the HUI gold mining index crashed and lost 32% and many junior mining stocks crashed and lost 35% to 40%. Furthermore, in 2015, we called near exact bottoms for gold and silver prices in the reports we distributed to our Platinum Members. We called for $13 to $14 an ounce silver as the bottom price in 2015, and in December 2015, spot silver bottomed at $13.62 an ounce. We called for $1,050 an ounce gold as the bottom price for gold in 2015, and gold bottomed at $1,045.40 an ounce on 3 December 2015.
At the start of 2016, I recommended 32 total gold and silver mining stocks for consideration to purchase, after correctly telling our members that gold and silver prices had bottomed in December 2015. Given our massive outperformance of the market in 2015 in our Platinum Membership, when we returned big gains to our members during a year most junior mining stocks lost 30% to 40% in share price, we were a bit conservative during H1 2016, as we sold a lot of the PM mining stocks we purchased at the end of last year, later during Q1 2016, as we wanted to confirm the recovery in the mining stocks. However, even though we only benefited on the surge in PM mining stocks in H1 2016 with a handful of stocks, we still were able to capture some really nice yields on a few stocks during H1 2016, among them gains of +113.3% and+185.3%, for example. However, note that not one of the 32 PM stocks we suggested for purchase in H1 2016 suffered losses. Here are the yields of not just the best performing of our stocks, but the yields of all 32 of the PM gold and silver mining stocks we suggested for consideration during H1 2016 from the start of the year until July 2016.
+414.70%, +218.7%, +393.2%, +238.2%, +244.5%, +200.0%, +300.0%, +465.0%, +113.3%, +118.1%, +111.7%, +127.4%, +100.0%, +117.7%, +122.3%, +166.8%, +151.4%, +121.7%, +81.2%, +22.4%, +70.5%, +16.5%, +7.3%, +53.0%, +59.3%, +91.7%, +79.3%, +86.2%, +93.0%, +71.8%, +89.6%, +76.8%
These yields will allow one to understand the literally hundreds of hours that goes into my research to identify the best gold and silver mining stocks in the world, especially, the best junior gold and silver mining stocks in the world. Had any of our members been more aggressive than our suggested buying and selling guidelines, and some were, and had they chosen to buy and keep positions open on every single gold and silver mining stock we suggested for purchase consideration at the very end of last year, they would not only have not lost any money on any of these positions during H1 2016, but would have owned six stocks that returned more than 200% to 300% and owned two additional stocks that returned more than 400% of yield.
Given such returns of the best gold and silver mining stocks, we find it incredibly strange how Wall Street and other large global investment firm have been across-the-board silent about discussing the returns of this asset class. Can you imagine if every company that traded on the US S&P500 had yielded the above returns during H1 2016? The only topic you would hear discussed on every mass financial media outlet in the world for 24 hours a day, 7 days a week, would be the phenomenal, unprecedented, once-in-a-lifetime, performance of the US stock market. Yet, we hear not a peep from these media channels that serve the banking industry’s agenda, not only about the strong performance of the top gold and silver mining stocks during H1 2016, but also about the massive untapped upside in potential yield that still remains within this asset class in coming years.
While it is true that we’ve heard physical gold and physical silver advocated by a few big bank analysts in recent times, PM mining stocks have largely been ignored completely by them, despite the yields they have been throwing off in recent months.
So even though we were conservative in our buy and sell guidance in H1 2016 in our Platinum Membership due to our positive performance in 2015, the above extremely significant yields on every single gold and silver mining stock we suggested for purchase consideration at the end of 2015 illustrates not only that our analysis is on point regarding the identification of the strongest gold and silver mining stocks, but also illustrates the further untapped potential of this asset class when one compares the current yields with the spectacular yields provided by this asset class during past historical PM bull markets (Lion Mines, Mineral Resources). However, be warned that for every Lion Mines and Mineral Resources, there will be at least 10 junior mining gold and silver stocks that crash and burn. This is why I spend at least 200 hours of research twice a year to produce our Platinum Membership Stock and Asset report (exclusive of hundreds more hours of additional research during the course of each year in support of these reports).
In coming years, there is little doubt in my opinion that escalating Central Bankers’ currency wars and intensifying world-wide fiat currency purchasing power destruction schemes will continue to propel the best gold and silver assets higher.
So how far do I believe gold and silver prices will fall during this current typical summer pause in gold and silver prices? Let’s just say that you already know that I think the Rabobank Chief Investment Officer’s prediction of $500 an ounce gold is ludicrous and that the current pause in the gold and silver price trend will be far more shallow than most big bank analysts believe it will be, with a strong rebound happening from the reversal point upon stabilization of prices. If you haven’t done so already, just read my post, “Three Charts That Show Much Higher Gold and Silver Prices Ahead” to understand that the PM uptrend, despite any interim corrections that develop, is still very much intact.
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