Don’t take my word for it. I’m obviously biased and it’s pretty rare when I can’t find some appealing reason to buy gold stocks.
So don’t take it from me…
Bank of America just released its outlook for gold, saying that gold prices could go lower from here – but that the story for gold stocks has never been better.
The bank writes: “Gold miner free cash flow is 10x higher than it was in 2020, with half the long-term debt as a percentage of equity. Gold miner earnings yields are the highest of any sector at 12.0% and are the least expensive relative to the S&P 500 in the last 20 years.”
Goldbugs are always waiting for a magic moment when the rest of the investment public gets with the program and starts buying gold stocks.
But most of the time, people hate gold miners for all of the right reasons. It’s a terrible business… CapEx intensive, low margins, politically toxic, dangerous, and highly sensitive to moves in gold’s price, but also energy and oil prices. I could go on.
I’m the world’s biggest fan of gold stocks, but most of them are awful investments most of the time.
So most of the time, people avoid these stocks, leaving only us goldbugs as buyers and sellers. That’s fine. I’ve built a career out of knowing exactly when to buy and sell gold stocks to profit, even when we’re not in the middle of a bull market.
One of my biggest gains ever was on a company called SilverCrest Metals, which I bought in 2015 in the middle of a terrible bear market for silver. The company soared 8,358% even as the metal went nowhere for years.
We’re in a different market now. A rare lull in the middle of what I believe will end up being the biggest bull market for gold and silver in our lifetimes.
I recently wrote to readers of my paid service GP10X about this unique moment:
“There are also times that happen once a lifetime where Gold Miners are one of the only sectors that provide value and profits at a discount. There aren’t many investors left who remember the 1970s where Gold stocks were the best investments of the decade. GP believes now is the perfect storm for Gold & Gold stocks. A historically overpriced stock market, foreigners fleeing US Treasuries, a US government with $40 trillion in debt, and a unified President, Treasury Secretary, and Fed President who are determined to run the economy as hot as possible as “growth” is the only way out.”
That’s where we are today. Whether you love or hate gold stocks, they’re simply the best value in the market right now.
If I could, I would force every investor in the world right now to buy this value. I can’t do that.
We can’t decide when the world will get with the program. But we don’t have to. The only thing we can do is to buy this value for ourselves, and to wait.
We’re in the eye of the hurricane right now. But the value is so amazing in gold stocks that it’s just a matter of time.
Buying gold stocks now will be rewarded.
If you’re looking for the simplest way to get started with my gold stock research, check out this report I recently wrote.
And if you’re not buying gold stocks right now, I want you to think about what you’re waiting for. The terms have never been this favorable. They aren’t likely to get much better.
Best,
Garrett Goggin, CFA, CMT
Lead Analyst and Founder, Golden Portfolio
