|
Dear Fellow Investor,
Gold’s up nearly $10 today. Hurray!
But if you’re rejoicing over that, you were probably agonizing over yesterday’s loss of about the same amount.
It’s this emotional roller coaster ride that puts gold and mining stock investors at a serious disadvantage. The answer, of course, is to instead use these swings to our advantage by steely investing at the bottoms and cold-blooded selling near the tops.
Of course, as I’ve said over and over during this latest correction, this is easy advice to give and hard to take. So I’m not preaching here — I’m just as guilty as the next investor.
My point is that all of us “gold bugs” need to buck each other up during times like these. We need to focus on the big picture and point others to the evidence arguing for much, much higher gold prices over the long term.
Of course there are plenty of factors arguing for a rebound in the short term as gold continues to bottom around these levels.
For one, there’s the remarkable fact that the large speculators on the Comex now have the largest net short position in the history of this record-keeping. Net short positions for the speculators are rare to begin with — to have one of the current size is a huge buy signal.
Why? Consider that the last time the large speculators were net short was in December 2015 — right before gold tore off on a 19% rally that sent many of our recommended junior mining shares up 300%, 400% and more.
This situation is so extraordinary that even mainstream traders like Jim Cramer are noticing it. In a recent presentation on his Mad Money show on CNBC, he outlined how extraordinary this opportunity is (and he filmed this before the speculators had actually gone net short!).
My view continues to be that gold is bottoming right now in typical summertime fashion, and will soon embark on an equally typical rally of around 10% or more.
So the resource-rich junior explorers/developers that I’m urgently recommending right now in Gold Newsletter represent extraordinary near-term opportunities. If past form holds true, they’ll double or more if gold rebounds 10% or so.
In fact, the profits are already rolling in. Just yesterday, Northern Empire Resources NM.V; C$1.57) announced that it was being bought by Coeur Mining (CDE; $6.70). Gold Newsletter readers who bought on my recommendation last November are pocketing a 70% gain on that pick alone.
I’ve got a list of other well-positioned juniors lining up to be the next big winners as gold rebounds. If you want to get in before the party begins, I’ll give you the chance to subscribe at half-price for the next two days.
Just CLICK HERE to lock in this deep discount while it lasts.
In the meantime, try not to watch the daily fluctuations in gold too closely. Keep your emotions in check...focus on the big picture...and take advantage of the bargains the market is handing you right now.
Brien Lundin
Editor, Gold Newsletter
CEO, the New Orleans Investment Conference
|
