The Round Rock Wealthbuilder's Meetup Message Board › "Buy Gold Stocks NOW," Says the Best Trader I Know
"Buy Gold Stocks NOW," Says the Best Trader I Know
By Dr. Steve Sjuggerud
Tuesday, May 28, 2013
"Gold stocks are a better trade today than they were at the bottom in 2008," the best trader I know told the crowd last week.
Jeff Clark of Stansberry & Associates is the best trader I know… And that was a huge statement from Jeff…
You see, gold stocks soared by 200% in a year from their October 2008 lows.That 200% gain is not me cherry-picking a good gold stock or two… that was the return of GDX – the big gold-stock fund – from trough to peak starting at its October 2008 low. Jeff typically trades options, and he delivered incredible returns for his S&A Short Report readers.
Jeff told the crowd about this "better than 2008" situation at a private investor conference last week at the Greenbrier resort in West Virginia.
I've known Jeff for probably 10 years. And I can't remember him ever being so emphatic about an investment idea.
After Jeff spoke, I bumped into Garrett Goggin, an analyst with John Doody's Gold Stock Analyst letter. He and John do great work in that letter. My favorite feature is their simple "overvalued/undervalued" measure for gold stocks. I've found that this is the best measure of gold-stock valuation on the planet.
I asked Garrett, "Are gold stocks more undervalued today than they were in late October 2008?"
"Yes they are," he replied. "As of our May 1 issue, gold stocks were 44% undervalued. And gold stocks are down since that issue came out."
In hindsight, late October 2008 would have been a fantastic buying opportunity in gold stocks. I never thought we'd see such a value ever again.
"It gets even better than that," legendary natural resources investor Rick Rule said over lunch. "Back in 2008, everything was crashing. Today, that's not the case – this crash has been limited to these stocks."
Jeff was bold enough to say, "Last Friday was the bottom in gold stocks." I can't know if he is right, of course. But I can tell you Jeff is very good at what he does. He is the best short-term trader I know.
In the most recent issue of my own newsletter, True Wealth, I wrote that "We are DARN CLOSE to an AMAZING buying opportunity in gold."....
|Dan Caldwell - Wea...||
Round Rock, TX
CNBC: Gold Bugs Don't Get It
The arguments are:
• Gold Is A Bubble That Has Popped
• This Evidenced By Recent Outflows From GLD ETF
I have a different opinion.
• Funds have been liquidating the GLD ETF for physical
• They know something- What Is It?
• In April Chinese Housewives bought 10,000,000 oz. of gold
• News from Asia is that gold premiums are +40%
For myself I don't care why. What I do know is that the gold mining companies have little debt, positive cash flow, are in a financially improved position from 2008, are reducing costs, we have heavy insider buying, and they are fabricating a retail product that the Chinese want to buy. If Apple were selling 10,000,000 iPhones in China every month, the stock would be soaring.
Disclosure: Heavily exposed to gold and silver mining stocks.