I have never seen such an outpouring of emotions. Everywhere I turn I see thousands of investors shaking in their boots over gold and silver. As if I didn’t warn them, repeatedly over the last few months: “Precious metals are still in a bear market. Don’t buy yet.”
I’ve said the same about mining shares. So if you’ve been following my advice, you’re fine to steer clear of the sector, you escaped virtually the entire carnage. And you also had the opportunity to profit from the declines.
But what really bothers me are the scores of investors who listened and acted on all the bad advice out there. They listened to all those pundits who somehow believe gold and silver have bottomed. Or that mining shares couldn’t get any cheaper.
|Many analysts own a coin dealer or bullion firm. They make the majority of their money by telling you to buy.|
So instead of refraining from buying, scores of innocent investors bought, bought and bought more and more gold and silver and miners … only to lose, lose and lose more money.
That’s too bad. Because now many investors have lost so much money they won’t be able to take advantage of the really low prices when they come and get back in the market.
Look, market extremes in the precious metals are always the prelude to major turning points. And we don’t have an extreme on the low side yet.
In fact, it was just this kind of extreme sentiment, only in reverse, that was the nail in the coffin that led me to put out a sell signal in gold in September 2011 — just 12 days after gold hits its record high of $1,920 an ounce.
It was precisely the same kind of overly bullish sentiment and trading signals from my models that also allowed me to warn everyone that silver was a disaster in the making.
Look. I love gold and silver. I’ve been trading them for 37 years. In the physical market. In the futures market. In options. In EFPs, or Exchange for Physicals.
I’ve been on the floor of the Commodities Exchange (COMEX). I’ve been in vaults in New York and Switzerland. I’ve managed tens of millions of dollars in gold and silver. I’ve traded the metals for Arab clients. For Europeans. For Japanese. For Germans. For Austrians. For Swiss. For Americans. For myself.
In the mid-1980s I was one of the largest gold traders in the world, trading more than $1.9 billion of gold in today’s dollars, on a daily basis.
And as much as I love gold, let me tell you straight up, gold is NOT a religion.
Gold and other precious metals are an asset market just like any other. What goes up, must go down.
And what goes down, once it hits the right price at the right time, will inevitably trampoline higher again.
Gold Is NOT YET At A MAJOR Low. Neither Is Silver.
Neither Are The Miners. Don’t Let Anyone Tell You Otherwise.
Nine out of every 10 precious metals analysts out there don’t know what they are talking about. Many of them have never even owned a single ounce of gold or silver.
Others simply always tell you to buy because they have a vested interest in you buying. They own a coin dealer or bullion firm. They make the majority of their money by telling you to buy.
If I sound angry, I am. Tens of thousands of investors have gotten killed in the interim bear market in the precious metals and miners. All because many analysts out there got overzealous and as greedy as can be, giving their clients bad advice.
My readers and subscribers fortunately know better, and avoided most of the carnage.
Now, I want you to be fully prepared for the new forces that will soon come on the scene to drive precious metals back up and within a few years’ time, to astounding record new highs.
But they won’t begin to positively impact gold, silver and miners for some months to come. So beware: The precious metals bear market is not yet over.
Best wishes, as always
P.S. When the Dow hits 31,000+ in 2017, how rich will you be? Click here for my FREE report where I give you the crucial steps you must take now to capitalize on this once-in-a-lifetime wealth-building opportunity.