Roller Coaster

After a big sell-off yesterday, gold’s up today on very negative economic data.

Dear Fellow Investor,

I’ve probably used that “Roller Coaster” headline dozens of times over the last few decades.

But as much as I hate to repeat myself, I couldn’t resist the temptation to use it again today, for two reasons:

First, it perfectly describes the ride gold has taken us on over the past two days, with a $24 drop yesterday and an $11 climb today.

Second, the Ohio Players’ “Love Rollercoaster” was playing on the radio on my way into work this morning, and now I’ve got the song firmly planted in my head.

So for the lady next to me at the red light, laughing as I pounded the beat on my steering wheel, this was the song in question.

For you, dear readers, the analogy is apt, but deserves some explanation. (I won’t try to blend any “Love Rollercoaster” lyrics into this message, and if you Google them you’ll see why.)

Golden Opportunities continues below...

Up And Down Again

My recent messages to you have revolved around how gold has been beaten back and forth by the daily headlines, and that the market had forgotten the powerful, underlying bullish factors that virtually demand much higher gold prices.

Yesterday’s sell-off wasn’t driven so much by news as it was a toxic combination of other factors, including a very strong dollar, quarter-end book-squaring and trading technicals (gold completed a classic head-and-shoulders pattern that often presages significantly lower levels).

Today we did have a bit of news to bolster gold. Specifically, the September ISM manufacturing index fell to 47.8 — solidly in contraction and against the consensus expectation of a 50.0 reading. This was the lowest level since June 2009.

In response, gold erased its losses on the day (it had been down as much as $13 in overnight trading) and leaped well into the green. In fact, a $25 swing as I write...roughly equal to yesterday’s loss.

In short, this ISM number re-awakened the recession narrative, and the prospect of more easing by the Fed. (The market’s expectation of a rate cut this month leaped from 40% yesterday to 60% today.)

That’s a huge shift in sentiment — and more in line with our fundamental view that we’re in an age of ever-easier money that will propel gold to new record highs.

The key here is to focus on the big picture...and take advantage of the market’s occasional myopia with regard to that big picture.

For example, despite today’s rebound I feel gold is likely to slide further in the days ahead. This week is key; if gold doesn’t resume its advance very soon, the technicals are indicating that it will likely keep sliding until (and if) we get the typical late-December rebound.

If that scenario plays out, we’ll want to take advantage of the bargain prices in top-quality junior gold and silver stocks. Many of these have the potential to multiply many times over in value — just as they did in the last bull run of the early 2000s.

Your best opportunity to find these top junior stocks...and I would dare call it the kind of opportunity that only comes every 10 or 15 years...is to attend the 2019 New Orleans Investment Conference.

Most of the world’s top experts on the junior resource sector will be there, sharing their top picks for tomorrow’s biggest winners.

But one word of warning: The Conference is being held from November 1-4...just a few weeks from now...and our room block at the luxurious Hilton Riverside is about to close.

Outside of this convenient room block, rooms in New Orleans at this time of year are incredibly expensive and hard to find. A couple of years ago the entire city sold out over our conference dates!

So if you hope to attend this year’s New Orleans Conference and take advantage of this generational opportunity, CLICK HERE to secure your spot.

(As an added bonus, you’ll save $400 if you can act now.)

All the best,

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