It's Time For Gold Stock Shareholders To HODL As Generalist Investors FOMO Trade Into Gold And Gold Stocks
Gold moves in a stealth bull market with very little commentary in financial media. Brokerage house analysts at the big Wall Street firms are starting to realize that gold is the safest place for investors to protect wealth and against devastating purchasing power destruction. It won’t be long before gold stock shareholders hold on for dear life (HODL) as generalist investors fear of missing out (FOMO) trade into gold stocks.
Gold miners are quickly becoming the most profitable business of any sector as gold is now trading well over $1000 above the average cost of producing gold.
M&A activity is picking up as the major gold miners are struggling to increase production and replace their old mines with new mines. This has its limits because there aren’t many small miners that can move the needle for the majors, which is the same situation in gold mine developers and explorers with important discoveries.
The supply chain is very weak and with not enough gold mine developers in the pipeline will be that way for the next decade or two. More evidence of the long-term weakness in the supply chain is the scarcity of explorers with important discoveries.
Meanwhile more investors are waking up to the problems associated with the Death Spiral of Debt in America and worldwide. For too long, the American and global economy has been built on debt and money printing. Which is causing a return to the Gold Standard as gold is at record prices against every fiat currency as it is the soundest form of money.
Central bankers are increasing their reserves of gold and it is now the second highest reserve currency held by central bankers as it surpassed the Euro recently. Next it has the US dollar in its crosshairs.
The central bankers in the BRICS nations have been leading the charge and are meeting soon, which seems to be a key reason for gold’s surge above $2700.
The Gold renaissance is looking very powerful as the gold chart has been going from the lower left to the top right. We are seeing higher highs and higher lows and that the basing after each rally are getting shorter in length and tighter in the range.
Next up I see that gold stocks, including gold mine developers and explorers with important discoveries, start to cause the shareholders to HODL while generalist investors FOMO position themselves.
Silver hasn’t really started to join the gold bull market and is primed to start moving toward its record high. Copper also has very powerful supply and demand fundamentals. In addition to gold, I’m very bullish on silver and copper.
The best way for investors to play the bullish scenarios for gold, silver and copper is through the stocks in these metals. This weekend I will be reporting on my top picks in silver, copper and gold stocks.
Gold mining is one of the most profitable businesses in any sector and will only get more profitable. The second quarter had the best quarter ever for the average price of gold for a quarter and the third quarter was even better.
When the gold miners report their third quarter, they will blow it out of the park and catch a lot of generalist investors by surprise.
All the best,
Allan Barry Laboucan
Allan, when looking at copper plays, have you looked at Seabridge? As I understand, they have one of the largest undeveloped resources in the world. I already own MUX, and looking to add a little more exposure which could be more MUX. Thanks for your insights.