Gold Stock Gains As Gold Drops

Who’s afraid of the coronavirus? Not U.S. stock market investors, who have bid equities up and sold gold down today.

But despite the drop in gold, one of our recent stock picks is beating Tesla today!

Dear Fellow Investor,

Investing sentiment can change in a flash. And it just did.

Hopes that the effects of the coronavirus epidemic on global markets will be far less than feared unleashed the pent-up animal spirits in the U.S. stock market today. Investors rushed into equities, sending the Dow up over 400 points...

...And Tesla up nearly 20% today alone!

Unfortunately for us, the waning fears also led them to sell gold, just as we’ve warned with such exogenous, geopolitical events. Gold’s down a bit over $20 in today’s trading.

But have no fear, the kind of exploration stocks that we focus on in Gold Newsletter can deliver Tesla-like gains even when gold falls.

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A great example came today: Even as gold was dropping like a rock, gold explorer Erdene Resource Development Corp. (ERD.TO) soared as much as 35% after releasing spectacular, high-grade gold results from its recent drilling.

And get this: We had just recommended Erdene in Gold Newsletter a few days ago, at much lower prices, warning that the upcoming drill results could be of a “market-moving” degree.

Boy were they!

As Gold Newsletter readers know, there are a number of reasons why I like Erdene for the long term, and the upcoming drill results were why I recommended the stock with some urgency.

Bottom line, I think the best days are still ahead for this explorer/developer.

Looking back at the big picture, today’s down-draft in gold is nothing — yet — for gold investors to be overly concerned with. At this point, it merely represents a temporary shift from a risk-off to a risk-on mentality in the markets.

At some point, you can be sure, sentiment will switch again. The economic data will indicate a looming slowdown or the stock market will demand more “cowbell” and the Fed will begin easing again.

In fact, the fed funds futures are now showing an 88% chance of two rate cuts by the end of this year!

So let’s remain confident in the factors that demand higher gold prices over the long term, and take advantage of these short-term buying opportunities as they emerge.

All the best,

Brien Lundin
Editor, Gold Newsletter
CEO, the New Orleans Investment Conference

P.S. Erdene was one of the three new recommendations in Gold Newsletter that I mentioned to you in our last letter. If you took advantage of the opportunity I offered then to subscribe to Gold Newsletter at half price, congratulations — you discovered all three of my new picks, including Erdene before it took off.

There are still two more picks in that issue that have yet to move, including one company that isn’t even beginning to trade for another two weeks!

You can get all the details immediately by subscribing to Gold Newsletter now, and I’ll even give you one last chance to do so at half price.

Just CLICK HERE to capture this opportunity before it disappears again.