From Canadian Mine Analysis site

Gold..our view!

Posted on July 13, 2020 | By KCGrainger | 

         The Gold market …… we expect much more upside…but expect downdrafts and pit-stops.

Our analysis suggests that we are now in a very strong market for gold and precious metals stocks which should continue for several years.  Few investors get involved when stocks are undervalued. Our analysis also suggests that the Industrial stock market such as the S&P 500 faces a long bear market.

Some so-called “experts” in their self-proclaimed wisdom have been advising since 2013 that precious metals stocks were in a long term bear market that offered little capital gains potential; yet many precious metals stocks saw enormous percentage gains. During this time period, the prices for many of the gold stocks have presented investors with some of the greatest opportunities for capital gains in years, few took advantage.  

The problem is that the gold shares and precious metals markets require extraordinary patience and most investors cannot tolerate the constant anxiety of the precious metals   volatility of their stocks’ prices. But those who can tolerate the pressure often do quite well.  Most cannot so they miss out!

Frequently the most opportune time to invest in precious metals shares is during a brutal bear market and at or near their price lows. That is where and when the price bargains occur.

What few understand is that for gold stocks to have a more all-inclusive bull market it would require a gold price that allows for consistent profitability. In our view, a key is for Gold to remain minimally above the $1700-$1750 level in order to indicate that gold mining will remain in a positive mode.Of course gold at $2000 plus would greatly increase profitability and share prices as well but it Is not required. Our analysis does expect $2000 to occur. First let’s see $2000 and then we can talk of $5,000.

Our longtime friend and former institutional portfolio manager Ray Langevin of Sillery, Quebec does in-depth technical analysis for Gold bullion by hand. His accurate charts have advised staying invested in gold for years and to use corrections for accumulation of  gold stocks. Ray has been extremely accurate and is very positive on gold and gold shares……..Very positive!    

          

The fact is that there really is no “best time or right time to buy the precious metals (gold & silver) stocks” as we have seen suggested constantly in many of the email advertisements. Of course some of the so-called experts have all the right answers despite the fact that the majority of those experts have been consistently wrong.  Over the last six years many gold stocks have presented tremendous opportunities for investment. There are always exceptional bargains that are unadvertised, it simply demands research. Quality information and research is available if an investor will devote the time. Few will do that.

           The “insider” transactions   ( Companies’ Officers)….   We monitor carefully the purchases of the officers and directors of their companies’ shares  and note that when the Gold/metals stocks are in the process of making  price bottoms their “insiders” are frequently  buying the their companies’ shares. It is not a perfect indicator but it is one of the best. While recent insider selling of large cap industrial stocks such as the Dow Jones Industrials has been ongoing with huge selling volume for several years. The insider buying of the precious metals stocks has been extremely heavy for the last six years with very little insider selling.

There is no longer the “market maker support” for the stocks that existed in the past for many reasons but that offers investors the opportunities to invest at even lower prices after a decline. Market makers often would support prices but for the most part are no longer there