Followers | 1 |
Posts | 49 |
Boards Moderated | 0 |
Alias Born | 09/28/2009 |
Friday, August 07, 2015 2:19:34 PM
By Dr. Steve Sjuggerud
Thursday, August 6, 2015
Now is a great time…
Nobody is expecting a crisis (similar to the one Greece just had) in the U.S., so the prices of classic "hard assets" – like gold and gold miners – are attractively priced today.
The price of gold – astonishingly – is at a five-year low. Compare that with stocks, which have run up for six consecutive years.
And gold is HATED today. According to my friend Jason Goepfert (who runs SentimenTrader.com), gold sentiment today is lower than it was in February 2001 – when gold was around $260 an ounce.
Longtime DailyWealth readers know we like to buy what is CHEAP and HATED. Right now, gold ticks both of those boxes.
However, I'm not heavily buying gold just yet. Let me explain…
For me to get really interested in an investment, I also want to see an UPTREND in place. (Cheap, hated, and in the start of an uptrend – that's my investing mantra.) With gold at a five-year low right now, we don't have an uptrend.
So even though gold is cheap and hated – and even though gold is THE great crisis hedge throughout history – I'm not heavily buying the metal yet.
And if you think the situation in gold is bad, then you ought to take a look at mining companies…
"Prices of many mining companies have fallen by over 90%," my friend and successful natural resources financier Jeff Phillips reminded me over lunch this month in San Diego.
Jeff is using the massive bust in small-cap mining companies as a buying opportunity…
"I don't know if the new bull market in resources starts six months or 12 months from now," he said. "But the prices right now for quality assets are incredible. You don't have to buy lower-quality assets that are cheap… Why do that when you can buy high-quality companies at great prices today? I'm buying."
Junior gold-mining companies are down 85% as a group in less than five years – as measured by the performance of the Market Vectors Junior Gold Miners Fund (GDXJ) – which holds a basket of small-cap gold miners.
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, you won't miss it. There will be plenty of upside potential when the trend starts moving upward.
The great part about holding gold and gold miners is that your downside risk will be limited. With gold at a five-year low and the shares of mining companies down by 85%, you will hardly be buying at the top when the time comes!
The general consensus is that there is no crisis on the horizon in the U.S. I don't expect a crisis soon, but it is possible eventually. And because no one sees it coming, the cost of protecting yourself today is cheap.
Once the uptrend kicks in, I suggest you buy these "crisis hedges" heavily.
Good investing,
Steve
Recent LODE News
- Form 8-K - Current report • Edgar (US Regulatory) • 09/18/2024 03:16:50 PM
- Comstock Fuels Executes International License Agreement • GlobeNewswire Inc. • 09/18/2024 03:10:14 PM
- Comstock Metals Secures New and Larger Revenue Contracts • GlobeNewswire Inc. • 09/17/2024 10:00:00 AM
- Comstock Metals Secures Multiple New Revenue Contracts • GlobeNewswire Inc. • 09/10/2024 10:00:00 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 09/03/2024 05:01:23 PM
- Comstock Metals Records First Renewable Metal Shipments and Sales • GlobeNewswire Inc. • 08/20/2024 10:00:00 AM
- Comstock Validates Record Renewable Fuel Yields • GlobeNewswire Inc. • 08/15/2024 12:33:24 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/14/2024 09:05:01 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/08/2024 08:30:45 PM
- Comstock Announces Second Quarter 2024 Results and Corporate Updates • GlobeNewswire Inc. • 08/08/2024 08:15:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/08/2024 08:02:15 PM
- Comstock Secures $325 Million Term Sheet for Investments and Real Estate Sales • GlobeNewswire Inc. • 08/08/2024 01:15:00 PM
- Comstock Inc. to Host Q2 Earnings Call on August 8, 2024, at 4:30pm ET • GlobeNewswire Inc. • 07/25/2024 08:30:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 07/19/2024 10:15:23 AM
- Form D - Notice of Exempt Offering of Securities • Edgar (US Regulatory) • 07/19/2024 10:05:29 AM
- Form 424B5 - Prospectus [Rule 424(b)(5)] • Edgar (US Regulatory) • 07/19/2024 10:01:58 AM
- Comstock Terminates Equity Purchase Agreement with New $2.5 Million Investment • GlobeNewswire Inc. • 07/19/2024 10:00:00 AM
- Form 424B5 - Prospectus [Rule 424(b)(5)] • Edgar (US Regulatory) • 07/18/2024 08:21:14 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 07/17/2024 08:16:26 PM
- Comstock Inc. Publishes its 2Q24 Stakeholder Perception Analysis Report • GlobeNewswire Inc. • 07/17/2024 10:00:00 AM
- Comstock Metals Secures First Industry-Scale Facility for Recycling Expansion • GlobeNewswire Inc. • 07/15/2024 10:00:00 AM
- Comstock Metals Receives County Operating and Storage Permit for Recycling Expansion • GlobeNewswire Inc. • 06/24/2024 10:00:00 AM
- Comstock Participates in Ribbon-Cutting of Green Li-ion’s New Commercial Scale Facility • GlobeNewswire Inc. • 06/19/2024 10:00:00 AM
- Comstock Shareholder Update • GlobeNewswire Inc. • 06/18/2024 11:44:19 AM
- Comstock Expanding Partnership with RenFuel • GlobeNewswire Inc. • 06/10/2024 10:00:00 AM
FEATURED Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM
North Bay Resources Announces Mt. Vernon Gold Mine Bulk Sample, Sierra County, California • NBRI • Sep 11, 2024 9:15 AM
One World Products Issues Shareholder Update Letter • OWPC • Sep 11, 2024 7:27 AM
Kona Gold Beverage Inc. Reports $1.225 Million in Revenue and $133,000 Net Profit for the Quarter • KGKG • Sep 10, 2024 1:30 PM