Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
Stock Investors What to do if Trump Bans TikTok - 5th Aug 20
Gold Trifecta of Key Signals for Gold Mining Stocks - 5th Aug 20
ARE YOU LOVING YOUR SERVITUDE? - 5th Aug 20
Stock Market Uptrend Continues? - 4th Aug 20
The Dimensions of Covid-19: The Hong Kong Flu Redux - 4th Aug 20
High Yield Junk Bonds Are Hot Again -- Despite Warning Signs - 4th Aug 20
Gold Stocks Autumn Rally - 4th Aug 20
“Government Sachs” Is Worried About the Federal Reserve Note - 4th Aug 20
Gold Miners Still Pushing That Cart of Rocks Up Hill - 4th Aug 20
UK Government to Cancel Christmas - Crazy Covid Eid 2020! - 4th Aug 20
Covid-19 Exposes NHS Institutional Racism Against Black and Asian Staff and Patients - 4th Aug 20
How Sony Is Fueling the Computer Vision Boom - 3rd Aug 20
Computer Gaming System Rig Top Tips For 6 Years Future Proofing Build Spec - 3rd Aug 20
Cornwwall Bude Caravan Park Holidays 2020 - Look Inside Holiday Resort Caravan - 3rd Aug 20
UK Caravan Park Holidays 2020 Review - Hoseasons Cayton Bay North East England - 3rd Aug 20
Best Travel Bags for 2020 Summer Holidays , Back Sling packs, water proof, money belt and tactical - 3rd Aug 20
Precious Metals Warn Of Increased Volatility Ahead - 2nd Aug 20
The Key USDX Sign for Gold and Silver - 2nd Aug 20
Corona Crisis Will Have Lasting Impact on Gold Market - 2nd Aug 20
Gold & Silver: Two Pictures - 1st Aug 20
The Bullish Case for Stocks Isn't Over Yet - 1st Aug 20
Is Gold Price Action Warning Of Imminent Monetary Collapse - Part 2? - 1st Aug 20
Will America Accept the World's Worst Pandemic Response Government - 1st Aug 20
Stock Market Technical Patterns, Future Expectations and More – Part II - 1st Aug 20
Trump White House Accelerating Toward a US Dollar Crisis - 31st Jul 20
Why US Commercial Real Estate is Set to Get Slammed - 31st Jul 20
Gold Price Blows Through Upside Resistance - The Chase Is On - 31st Jul 20
Is Crude Oil Price Setting Up for a Waterfall Decline? - 31st Jul 20
Stock Market Technical Patterns, Future Expectations and More - 30th Jul 20
Why Big Money Is Already Pouring Into Edge Computing Tech Stocks - 30th Jul 20
Economic and Geopolitical Worries Fuel Gold’s Rally - 30th Jul 20
How to Finance an Investment Property - 30th Jul 20
I Hate Banks - Including Goldman Sachs - 29th Jul 20
NASDAQ Stock Market Double Top & Price Channels Suggest Pending Price Correction - 29th Jul 20
Silver Price Surge Leaves Naysayers in the Dust - 29th Jul 20
UK Supermarket Covid-19 Shop - Few Masks, Lack of Social Distancing (Tesco) - 29th Jul 20
Budgie Clipped Wings, How Long Before it Can Fly Again? - 29th Jul 20
How To Take Advantage Of Tesla's 400% Stock Surge - 29th Jul 20
Gold Makes Record High and Targets $6,000 in New Bull Cycle - 28th Jul 20
Gold Strong Signal For A Secular Bull Market - 28th Jul 20
Anatomy of a Gold and Silver Precious Metals Bull Market - 28th Jul 20
Shopify Is Seizing an $80 Billion Pot of Gold - 28th Jul 20
Stock Market Minor Correction Underway - 28th Jul 20
Why College Is Never Coming Back - 27th Jul 20
Stocks Disconnect from Economy, Gold Responds - 27th Jul 20
Silver Begins Big Upside Rally Attempt - 27th Jul 20
The Gold and Silver Markets Have Changed… What About You? - 27th Jul 20
Google, Apple And Amazon Are Leading A $30 Trillion Assault On Wall Street - 27th Jul 20
This Stock Market Indicator Reaches "Lowest Level in Nearly 20 Years" - 26th Jul 20
New Wave of Economic Stimulus Lifts Gold Price - 26th Jul 20
Stock Market Slow Grind Higher Above the Early June Stock Highs - 26th Jul 20
How High Will Silver Go? - 25th Jul 20
If You Own Gold, Look Out Below - 25th Jul 20
Crude Oil and Energy Sets Up Near Major Resistance – Breakdown Pending - 25th Jul 20
FREE Access to Premium Market Forecasts by Elliott Wave International - 25th Jul 20
The Promise of Silver as August Approaches: Accumulation and Conversation - 25th Jul 20
The Silver Bull Gateway is at Hand - 24th Jul 20
The Prospects of S&P 500 Above the Early June Highs - 24th Jul 20
How Silver Could Surpass Its All-Time High - 24th Jul 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Gold Stocks Crash Opportunity Better than 2005

Commodities / Gold and Silver Stocks 2015 Jun 01, 2015 - 04:48 PM GMT

By: DailyWealth

Commodities

Dr. Steve Sjuggerud writes: In July 2005, I recommended three small gold stocks in my high-priced, speculative newsletter back then called Sjuggerud Confidential.

At the time, gold-exploration companies were dirt-cheap and completely ignored. Nobody wanted anything to do with them.

My top recommendation went on to return a 995% gain. That's the largest gain of any recommendation in the history of my publisher, Stansberry Research.


And right now, I believe we have a similar – but even better – opportunity than back in 2005. Today, I'll show you why...

You've got to remember, the price of gold in mid-2005 was around $425 an ounce... To put that in perspective, the price of gold was down 50% from its highs 25 years earlier! Why on Earth would anyone invest in a gold-exploration company in 2005?

Of course, you know I'm a contrarian investor... I look for what nobody else wants. By 2005, gold had bottomed and was moving up. So I started checking out the gold positions with more upside potential – like exploration companies.

I wanted to find three companies with massive piles of gold in the ground. I wanted to find three "golden lottery tickets" that never expired... They just needed the price of gold to go up.

So in July 2005, I recommended three gold-exploration companies to my subscribers – Seabridge Gold, Arizona Star, and Crystallex.

As I wrote then, "the thing about buying tiny gold stocks is, you really shouldn't buy just one." You want to spread your risk, as some will soar and some will crash. I stand by that advice today.

As you know, the price of gold soared over the next few years. Seabridge Gold and Arizona Star turned out to be home runs – you would have more than doubled your money on both of them following my advice.

Seabridge was the top performer – we pocketed a 995% profit. That 2005 recommendation of Seabridge Gold has turned out to be the best-performing stock recommendation of my career so far. The third stock didn't turn out so well... Crystallex was taken over by the Venezuelan government and basically went to zero.

But because our risk was spread out across three stocks, we made extraordinary returns.

And today, we have an even better opportunity than in 2005...

Gold-exploration companies have been decimated over the past four years. They're down 90% since April 2011. Take a look...

After a crash like that, gold explorers like Seabridge Gold are cheaper today than they were in 2005 (based on how much gold you control when you buy a share of their stock). And they're more hated than I can ever remember. Nobody wants anything to do with them.

The bigger picture in gold stocks is similar...

This next chart is a ratio of a gold-stock index to the price of gold. Today, you can see that this ratio is right at its all-time lows...

The only time this ratio got this low in the past was in late 2000 – and gold stocks soared by 300% in two years after that.

Right now, we have one of the best opportunities in history to buy gold stocks. This ratio is too extreme to ignore. Gold explorers have fallen the most – they are the most hated.

While I believe all gold stocks could perform well over the coming years, the biggest gains will come from following my 2005 blueprint... buying "golden lottery tickets" with huge hoards of gold in the ground.

That's what I'm doing in my True Wealth Systems newsletter right now. In fairness to my readers, I can't tell you the specific recommendations. But I recently put together a full report on the idea, which you can check out here.

Even if you don't become a True Wealth Systems subscriber, you have an amazing opportunity in gold stocks today. I urge you not to miss it.

Good investing,

Steve

P.S. I spent years figuring out exactly what moves gold prices... what I call the "Gold Code." And with the help of our sophisticated True Wealth Systems computers, we've finally cracked the code. You can learn all the details about cracking the Gold Code and the best way to profit here.

http://www.dailywealth.com

The DailyWealth Investment Philosophy: In a nutshell, my investment philosophy is this: Buy things of extraordinary value at a time when nobody else wants them. Then sell when people are willing to pay any price. You see, at DailyWealth, we believe most investors take way too much risk. Our mission is to show you how to avoid risky investments, and how to avoid what the average investor is doing. I believe that you can make a lot of money – and do it safely – by simply doing the opposite of what is most popular.

Customer Service: 1-888-261-2693 – Copyright 2013 Stansberry & Associates Investment Research. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This e-letter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of Stansberry & Associates Investment Research, LLC. 1217 Saint Paul Street, Baltimore MD 21202

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Daily Wealth Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules