"Greetings. Even though gold is now at a new all-time high, and up each of the last 9 years, I can tell that apprehension rather than confidence still has many gold believers in its grip. If you read the mainstream articles (excluding those who have been predicting this bull move for years,) you will find little appetite for the metal and less for the shares, even though all of our problems are totally unsolvable without quantitative easing ad infinitum. The reporters or analysts just don't see it, nor will they likely ever understand the role of gold in the monetary system. My advice: shake the dust off your feet and move on.
Then there are the worriers that we are about to face a repeat of the credit disintegration of 2008-09. Please understand, that although it may come, it will be different, for the next disaster will be one that will bring a panic into gold, not out of it. If you are waiting for the all-clear signal to be sounded as you are out of the gold market, you are going to miss a great piece of the move that is now underway.
I can tell from many of my emails that many of you are expecting a major sell-off before you will buy the gold shares. I believe that you are making a mistake for we are on the very cusp of a monumental move in the shares. It appears to me that the first group will be the larger listed shares that now are breaking out of a 10 year inverted head and shoulders formation. This group right now is being led by Newmont and Randgold, but Goldcorp and even often villified Barrick are starting their moves. Once Newmont moves up a few more dollars, it will be solidly at a 25 year high.
More importantly, the large funds will surely notice this and upon investigation, will find out that the large companies are selling at incredibly low prices relative to their prospects. As a point of information, at the low of the 1974 bear market, GE was selling at 4 times earnings. By 2000, it was selling at 100 times its earnings. The perception of gold miners being a bad place to invest is about to change and we are going to see the mania of a lifetime. I believe the rest of the year will be very freaky for gold and especially for the shares."
PRIVATE SOURCE. |
