Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24
Stock Market Breadth - 24th Mar 24
Stock Market Margin Debt Indicator - 24th Mar 24
It’s Easy to Scream Stocks Bubble! - 24th Mar 24
Stocks: What to Make of All This Insider Selling- 24th Mar 24
Money Supply Continues To Fall, Economy Worsens – Investors Don’t Care - 24th Mar 24
Get an Edge in the Crypto Market with Order Flow - 24th Mar 24
US Presidential Election Cycle and Recessions - 18th Mar 24
US Recession Already Happened in 2022! - 18th Mar 24
AI can now remember everything you say - 18th Mar 24
Bitcoin Crypto Mania 2024 - MicroStrategy MSTR Blow off Top! - 14th Mar 24
Bitcoin Gravy Train Trend Forecast 2024 - 11th Mar 24
Gold and the Long-Term Inflation Cycle - 11th Mar 24
Fed’s Next Intertest Rate Move might not align with popular consensus - 11th Mar 24
Two Reasons The Fed Manipulates Interest Rates - 11th Mar 24
US Dollar Trend 2024 - 9th Mar 2024
The Bond Trade and Interest Rates - 9th Mar 2024
Investors Don’t Believe the Gold Rally, Still Prefer General Stocks - 9th Mar 2024
Paper Gold Vs. Real Gold: It's Important to Know the Difference - 9th Mar 2024
Stocks: What This "Record Extreme" Indicator May Be Signaling - 9th Mar 2024
My 3 Favorite Trade Setups - Elliott Wave Course - 9th Mar 2024
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Did Gold Stocks Just Bottom?

Commodities / Gold and Silver Stocks 2015 Jul 23, 2015 - 05:32 PM GMT

By: DailyWealth

Commodities

Dr. Steve Sjuggerud writes: "Perhaps today was capitulation in the gold market," a CEO of a gold-mining company told me in an e-mail Monday evening...

Gold-exploration stocks had just lost 14% of their value in two days – based on the gold-exploration stocks fund, the Global X Gold Explorers Fund (GLDX). This CEO thought it could be the bottom in gold-exploration companies.


"It's hard to believe the current valuation of gold stocks," he said. "I never thought I would ever see our stock back at these levels. I could not resist and purchased some shares today."

He was a bit early in his optimism... As I write, gold-exploration companies are down since he bought earlier in the week.

But I agree that it sure felt like "capitulation" – panicked selling that often creates a bottom...

Gold stocks are now down 87% in the past four years (as measured by GLDX). Meanwhile, stocks, in general, are up 72% (as measured by the S&P 500 Index) in the same time frame.

Take a look:


This is what a bottom in an asset often looks and feels like. The problem is, calling a bottom right is tough...

There is a much smarter way to invest in blown-out assets...

Here's what I told my paid subscribers in my True Wealth letter last week – before the big bust in these stocks:

Smaller mining stocks are definitely CHEAP and HATED today. But like gold, we don't have an uptrend yet – so we don't have our green light to buy.

Prices are cheap, but they could continue to get cheaper. We don't want to try to "catch a falling knife."

Don't worry, we won't miss it. There will be plenty of upside potential when we do get in.

It was the right call.

You might get the headlines and the glory for calling the bottom. But in the long run, it's difficult to make money doing that...

Gold-mining stocks are incredibly cheap today. And we will be buyers soon. But we want to wait until after gold stocks hit the bottom before putting money to work. That means we're waiting for now.

Good investing,

Steve

P.S. A great way to learn about the best buys in the resource space right now will be at the Sprott-Stansberry Vancouver Natural Resource Symposium next week. I'm speaking at the event... and I look forward to meeting with other experts from inside the industry.

Importantly, it's not too late to join us for the event. You can access the entire conference online. If you're interested in resource investing, this is something you'll want to check out. You can find the full details 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

© 2005-2022 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