| Another trading day, another session where once high-flying stocks are stumbling...and gold is soaring. |
| As you can see from the chart above, gold took off in overnight trading, but was slammed by the typical bear attack upon opening in New York. That took gold’s gains from over $40 to only about $20. |
| But then buying flooded in, overwhelming the bears and sending the metal back skyward, well above $3,100. |
| What’s behind this kind of relentless demand? I think there are three factors at work in gold right now: |
| 1) A continued, powerful undercurrent of central bank buying. While mainstream reports repeat China’s claim of renewed, but still limited, gold purchases, I believe China has been buying aggressively all along.
2) Short-covering. Sharp spikes in price for any exchange-traded asset is often an indication that someone was caught short and forced into desperate buying to cut losses.
But this is almost always a short-term phenomenon lasting only one session or two. Gold’s multi-week, even multi-month, spike may belie massive short positions by both bullion banks and central banks (and be related to point No. 1 above). As I’ve been saying, I think there’s a lot of gold trying to get back where it was supposed to be all along.
3) Rotation. As I’ve also been writing, it’s vitally important to recognize that gold (along with gold stocks) is the only sector posting gains for the first quarter...and those gains have been quite significant.
Funds and institutional investors don’t want to issue quarterly reports showing that they’re not aboard this train. And they don’t want to endure another quarter where others who are aboard are dramatically outperforming them.
Money that was in the Mag 7, AI and even Bitcoin are rotating at least in part into gold and gold stocks. And because this sector is tiny in relation to those capital pools, the reaction has been and will be explosive. |
| How To Leverage This Move |
| None of this is new to me.
Over the four decades I’ve spent in our organization, at the very epicenter of the hard money movement, I have seen these kinds of bull markets.
...And the kinds of life-changing returns that they deliver.
This market reminds me of the early 2000s, but with one critical difference: Back then, gold and silver were as bombed out as the mining stocks. It took courage and conviction to believe that the metals would rise to record heights.
Today, gold is already far above previous record levels, and rising. Yet the mining stocks remain near long-term lows. |
| Again, this is a generational opportunity, and one that should not be wasted. |
| One of the best ways to exploit a secular metals bull market like this one is through junior mining stocks. The stocks we recommended and covered in Gold Newsletter during the 2000s bull market multiplied many times over, creating absolute fortunes for our subscribers.
It’s starting to happen again — a number of companies in our Gold Newsletter portfolio have already doubled or more over the past few months...and more seem ready to pop.
Just today, a handful of our picks have announced major news: |
- One of today’s top silver exploration companies — which we’ve followed since inception — just hit a new high-grade zone (up to 2,200 g/t silver equivalent!) fully six kilometers from its current resource.
- Another of our best silver outfits also uncovered a new high-grade target 1.2 kilometers from its 100-million-ounce resource.
- One of my favorite gold plays (I think it’s going to be the next mid-tier producer) is announcing a major, 15,000-meter drill program on its high-grade deposit. I think this deposit is going to be an absolute cash cow but, importantly, this drill program will hit new targets that could dramatically expand the resource.
- One of our newest recommendations (up 38% so far since we recommended it in our February issue) has been hitting gold grades far above expectations along trend. In fact, the results have been so good that they’re expanding the drill program...and including a major new target.
- Another pick has just announced nearly $25 million in gold revenue this quarter...while another has released forecasts of up to $40 million in free cash flow this year — both far exceeding any previous predictions.
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| In other words, this market is moving both on the gold price and a flood of new money coming into the sector.
The good news is that it’s still very early, and what we’ve seen is just a small fraction of what could come. The move has been confirmed...and the big returns are still ahead. |
| And just in time, I’ve just announced no less than four exciting new stock picks in our April issue of Gold Newsletter. |
| If you want to jump aboard this train before it leaves the station, I strongly suggest that you click on the link below to subscribe for a full year, or to get a taste of what we offer with a single-issue purchase. |
| Brien Lundin
Publisher, Gold Newsletter
CEO, the New Orleans Investment Conference |
| CLICK HERE
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