Gold Primed For A Massive Breakout And Gold Stocks Are Ready For Parabolic Moves

Generalist investors are starting to pay attention to gold and the gold stocks in a much more significant way. Unfortunately when they look at the gold stocks their comments clearly show that when they look at them they mostly pay attention to the ETFs.

Their comments often go something like well gold is doing great but why aren’t the gold stocks. Which tells me that when they think about gold stocks, they look at Newmont, Barrick, GDX and GDXJ which are all trading below their 52-week highs. While gold is hitting record highs.

I’m no fan of the ETFs, Barrick or Newmont as they all have issues. Barrick has mines in challenging countries, case in point Mali confiscating a bunch of their gold. Newmont is not the most efficient miner and they are also digesting the takeover of Newcrest.

The ETFs are made up of the good, bad and ugly. Plus, the makeup of the funds are questionable. The GDX is heavily weighted to Newmont, while the GDXJ is supposed to represent juniors, yet it is overweight in companies that are mid-tier gold miners.

Personally, I would never own an ETF, it makes no sense because with a reasonable amount of homework, one can soundly beat the fund performance. By sticking with quality over deworsification.

Last year, my top gold miner picks were Agnico Eagle, Alamos Gold and SilverCrest Metals. They all soundly beat the performance of the ETFs and the bullish move in gold.

In Agnico Eagle you have the best run major gold mining company. They produce gold for well under the average price of the major gold miners. Which makes them a free cash flow machine that has set a series of quarterly records in generating free cash flow.

Alamos Gold is the best in breed of the mid-tier gold miners that is also an exceptionally well run gold miner. They also did a wonderful job when it comes to generating free cash flow and they are making moves to bring their already low costs of producing gold to around $500 per ounce lower than the average cost of producing gold amongst the gold miners.

I covered SilverCrest many times in the reports since they first brought the Las Chispas mine into production. When they brought it into production they owed $100 million that they borrowed to build the mine. It was such a low-cost and high-grade gold-silver mine that in the first couple of years of full commercial production they paid off all the debt, bought back stock and built up a warchest of cash, gold and silver worth close to $200 million. Their success led to them getting bought out by Couer Mining.

It pays to understand the key metrics that drive the valuations of gold stocks and stick with those that have strong value propositions.

For those that want to look at companies along the gold stock food chain. From the best in breed majors to gold mine developers with high-quality projects and explorers with important discoveries, a couple weeks ago I wrote a report just for you.

In that report (you can find it here) I focused on ten companies that were picked in the reports that had made impressive breakouts from where they ended 2024 and into early 2025.

Part of the reason that I believe that generalist investors are not well informed when it comes to the fundamental reasons to be bullish on gold and the gold stocks is on the shoulders of management of the gold stocks. Many are run by management that I say are stuck in the Fax Machine Era and not adapting to the digital marketing world we have now.

They have been in the business for decades and aren’t joining the digital marketing world where generalist investors are these days. Back in the Fax Machine Era, there was a vast network of stock brokers that focused on gold stocks, and brokerage house analysts that covered the sector. Plus, traditional financial media covered gold and the gold stocks. Additionally, there were plenty of institutional investors that focused on gold stocks.

But, after the 2001 to 2011 gold bull market they moved on to other sectors. The landscape has changed dramatically. There are very few stock brokers that focus on gold and gold stocks, brokerage house analysts aren’t covering them like they used to, traditional media has abandoned them and there are very few institutional investors that serve as the venture capitalists.

Now the coverage has moved online using social media sites to get the word out. Gold companies have to roll up their sleeves and get out on the digital airwaves to tell the bullish story for gold, gold stocks and the mining sector.

Some are making the effort, but sadly many are not. So the generalist investors and retail investors are hungry for digital content but not getting fed.

Which means that they aren’t well informed, so they watch the price of gold and fluctuations of the prices in the metal, Newmont, Barrick and the gold ETFs.

The mining industry needs to take the gold bull by the horn to tell the tremendously bullish story about gold, mining and their companies.

Golden opportunities meet digital marketing.

All the best,

Allan Barry Laboucan