I know it takes emotional stamina, but if you agree that we are in a bull market for gold and specific minerals, then this current dip we’re experiencing is a major buying opportunity!
All bull markets climb the wall of worry. Trump’s victory caused everyone to speculate that gold would explode higher, including your editor, but we were wrong, and it certainly led many in the industry to doubt the firmness of the 2016 move we’ve seen in precious metals.
The Italians planted an important flag with their rejection of the status quo, and again, very bright people thought this would send gold higher, but after a short move up yesterday, gold quickly reversed.
Now, the sentiment across the board is that the imminent rate hike by the FED will do gold in, sending it much lower, but I suspect the markets will do what they always do – move in the exact opposite direction of market participant expectations.
Just as Trump and Italy surprised bullish gold investors, the December rate hike by the Federal Reserve is going to give those shorting gold and bearish gold shares a nasty surprise.
Here’s the key: The real yield in bonds is below price inflation (even with the government’s fraudulent CPI data), and this environment is historically when gold has made its most violent and sudden moves higher.
Many of the top A-listers I personally meet with regard this as the only indicator of where the gold price is headed in the long-term… When investors can’t beat the rate of inflation and are guaranteed to see their savings shaved by central banking policies, the gold price moves up big.
That’s precisely what’s happening now, which is why we feel certain of a gold market that could see the price of gold go up 3 to 5 times where it is today. It’s much like in the late 1920s and 1970s, when bond and gold investors were forced into a corner and investors fled bonds and bull-rushed into physical gold.
I’ll have a more detailed report we’re working on that we will release December 30th. For now, I am taking very large positions in core gold and silver shares, as they have all seen pullbacks.
The sector as a whole is on sale!
I know it can get ugly out there, but if you truly want to make money, you buy bull market dips – you invest right when pessimism rises to extremes, but the fundamentals are still holding strong.
Frank Holmes, the famed resource fund manager, just said in an interview that 30% swings are to be expected and exploited – not shied away from and succumbed to. December of 2016 is having one of those moments for gold, so if you’re like me, I want to use this as an opportunity to buy cheap shares, plain and simple.