“The gold stocks are truly a coiled spring today, ready to explode higher soon and trounce everything else. They are deeply out of favor, incredibly undervalued, and one of the only sectors that can rally sharply when general stock markets sell off. If you want to multiply your wealth by fighting the crowd to buy low then sell high, this small and forgotten contrarian sector is the place to be. Nothing else rivals it.

While investors and speculators alike can certainly play gold stocks’ coming powerful uplegs with the major ETFs like GDX, the best gains by far will be won in individual gold stocks with superior fundamentals. Their upside will far exceed the ETFs, which are burdened by over-diversification and under performing stocks. A carefully-handpicked portfolio of elite gold and silver miners will generate much-greater wealth creation.
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The bottom line is gold stocks are basing technically and cheap fundamentally today. While this small contrarian sector has largely been forgotten, its past 18 months’ consolidation trading range continues to hold solid. The longer the basing, the greater the potential upleg when investors return. And despite trading at levels implying far-lower gold prices, the major gold miners are actually earning fat profits today.

Those earnings will surge dramatically as gold continues powering higher in its own bull market. It’s only a matter of time until investors see the extreme market-leading value inherent in the gold miners’ stocks. These lofty stock markets will soon get dragged lower by this year’s unprecedented tightening by the Fed and ECB, rekindling gold investment demand. And the dirt-cheap gold stocks will soar as gold returns to favor.”

Adam Hamilton, CPA June 22, 2018