From Stefan Gleason, Originally Published on Money Metals Exchange
“The first trading days of 2018 are confirming signs of renewed investor interest in the precious metals sector after a long period of malaise.
Over the past five years, the yellow metal has been basing out in a range between $1,050 and $1,400. A push above $1,400 later this year would therefore be significant.
The flood of deficit-financed stimulus sets the economy up for a short-lived spurt of gains… followed by longer duration debt and inflation pains. For now, investors are still enjoying gains, as reflected by the ongoing strength of the stock market. But inflationary pressures are already building in raw materials markets.
Metals Focus projects mining output of gold in 2018 will be 3,239 tonnes, a slight decrease from 2017. Analysts expect a more significant drop could occur in 2019.
While you can still buy gold under $1,400 and silver under $20, they remain (for now) compelling values. Silver looks especially compelling given its cheapness relative to gold and virtually every asset on the planet.”
Thanks to Stefan Gleason, Originally Published on Money Metals Exchange
From Daniel Ameduri of Future Money Trends
“We have a hated gold market that is even despised by many gold bugs who’ve turned to cryptocurrency and abandoned the precious metals completely.
Despite the obvious, the mood couldn’t be worse for gold and gold shares.
It got so bad in 2017 that even the numismatic coins, which can have premiums of $500 over spot in a bull market, were barely trading for more than a standard gold eagle coin.
In our opinion, due to retail sentiment and the lack of institutional demand, we still have a few more months to accumulate gold shares before they have a liftoff moment sometime in 2018 after the gold price surpasses 52-week highs and crosses over $1,400.
Here are the stocks we are adding to right now in anticipation of a gold stock rally in the spring/summer of 2018:
1. Silver One Resources (TSXV: SVE) has one of the purest silver assets on Earth! It’s in the safe mining jurisdiction of Nevada.
2. GoldMining Inc. (TSXV: GOLD) has a monster gold (and copper) portfolio, and Rick Rule has referred to it as a top optionality play on the gold price.
3. First Mining Finance (TSX: FF) has high-quality, mining ounces in Canada. This one is setting up to be a lucrative takeover target for any major that is looking for turnkey gold assets.
I also recommend you consider buying the numismatics directly from MilesFranklin.com. These are coins we almost NEVER suggest, but they are still very cheap right now and are trading at only $25 to $35 over what an American Eagle coin costs.
In prior bull markets, these coins have seen $500 to $600 premiums due to their rarity, and I think that’s a nice side bet to add to our physical accumulation.”
Thanks to Daniel Ameduri of Future Money Trends
The Deviant Investor