Regarding gold equities research and gold and silver spot prices, this is what I recently wrote in our July issue in our Crisis Investment Opportunities newsletter:
Regarding gold: “I believe that gold will reverse in price closer to the $1,200 level than the $1,175 level.” Four days after issuing that statement, spot gold reached $1,204, which marked the bottom, and has promptly climbed $64 an ounce higher.
Regarding silver: “If silver’s descent is not yet done, it could possibly challenge the low of $15.68 established at the end of last year before rising again, but if it does, I think it will bounce from these levels quite quickly, as any smash to this level will be executed and propagated on no fundamental factors but only by bankers attempting to close out their short positions in the silver futures markets. Silver prices at the current juncture to the next two weeks or so should mark the low for 2017.”
After I wrote that, silver did get smashed considerably lower than $15.68 to $14.34, but that smash, as I had predicted, literally only lasted but for a New York minute, as most of the smash from above $16.00 an ounce to $14.34 was literally regained in just a few minutes. However, the smash represented a non-tradable event in physical terms, as it happened so quickly and was deliberately executed during thinly traded hours that made it near impossible to buy any physical silver anywhere near $14.34 or even $15.00 an ounce. Furthermore, the very next day after the very short-lived silver smash, silver closed 9% higher at $15.63, and has steadily climbed since then, to its current spot price of $16.79.
Though sentiment has been extremely negative towards gold and silver as of late, and I still encounter dozens of articles that wrongly describe gold as a “speculation” and ask if “speculating in gold is worth it”? If anything, the wild swings in the prices of cryptocurrencies as of late, both up and down, illustrate that cryptocurrencies should be viewed as a speculation, whereas gold should be properly viewed as the foundation for one’s savings. And for that matter, all overvalued and overpriced stocks, which are the majority of stocks that comprise the major global indexes, should all be viewed as highly speculative as well. No one knows when these bubbles will burst, though I am certain that when these bubbles burst, it will be a tragically spectacular event that will wipe out billions of wealth very rapidly. You can also put overpriced real estate holdings and bonds in this category as well.
Perhaps marking the peak of these bubbles, consider how ridiculously bankers have priced their stock research services. Credit Agricole offers their “Premium Research Package” for 400,000 Euros (US$473,200). On the massively discounted side, Nomura offers a general stock market trend report for just US$134,000 a year. Barclays bank seems to understand the bubble carnage that is coming by offering a research package on the most hated of asset classes at the current time, gold stocks, because they understand gold stocks, and likely silver stocks to an even greater degree, are the two most undervalued stock sectors in the entire world. Consequently, Barclays offers a special gold equities research package for the very special (or ridiculous) price of just $455,000 per year, with opportunities to quickly spend more than half a million dollars a year on gold equities research with special one-on-one meetings and other add-ons to their gold equities research package. I certainly hope that Barclays gold equity analysts are much more well-versed in how to properly analyze gold and silver equities than other large bank gold and silver equity analysts. Some public silver and gold equities research I’ve seen from the larges global bank analysts in the past several years have been horrendous, with some analysts failing to demonstrate that they understand how to correctly interpret industry-specific terms, while others simply ignore massive risks to gold mining companies just because they do not show up in balance sheets, financial statements and public earnings reports.
In any event, I believe we are well-positioned now for a strong second half 2017 performance in gold and silver stocks. To learn about the best gold and silver equities to buy, please consider our Crisis Investment Opportunities newsletter, or for premium research on junior gold and silver equities with higher upside, please consider our Platinum equities research package. I recently released my mid-year 2017 Platinum junior gold and silver equities research package, in which I provide analysis on 42 of the best junior and intermediate gold and silver equities in the world that trade on Canadian, Australian, UK, and US stock exchanges, a specific asset allocation model with complete weightings for each individual holding, and specific price points to buy each asset. I further provide research on a handful of other non-PM related assets, all for a price that is less than 1.65% of the price of Barclays gold equities research package. (Editor’s Note: We are in the process of re-constructing our services, in which we now offer gold equity courses, a service that will be offered in future years).