Markets

Gold is strong – mining stocks are valued cheaply

Dear readers,

In the summer of 2018 gold was trading at just under $ 1,200 an ounce, and sentiment indicators had fallen to extremes. At the same time, the entirety of my analytical models gave very strong buy signals for both gold and selected mining stocks. “You can’t get in cheaper”, I wrote in my market commentary, “now is the best time for you to get selected mining stocks into your portfolio.”

The bull market in precious metals still has plenty of room for improvement

Today gold is over 60% higher, and the XAU gold mining index is up 150%. Despite these excellent results, the precious metals markets are still ignored by most investors. We are still miles away from speculative exaggerations. That’s a very good sign. It shows that the bull market in precious metals is at an early stage and that there is still a lot of room for improvement.

Gold price per ounce in $, 2018 to 2020

In the summer of 2018 (blue ellipse) we pointed out the great buying opportunity that you had with gold and selected mining stocks. Another sector is now in a similarly promising position. Source: StockCharts.com

Mine stocks just before a new buy signal

As indicated by my price range indicator, a correction began in the precious metals sector at the beginning of August. This is only an ultimately insignificant correction in the context of a long-term bull market, nothing more.

For those investors among you who are not yet invested, corrections are excellent opportunities to get in relatively cheaply. However, few private investors have the courage to buy at such times. Now the mining stocks are on the verge of a new buy signal, which indicates the start of the next upward wave.

Do not miss this opportunity. In contrast to the general US stock market, which is historically overvalued, mining stocks have an extremely attractive fundamental valuation. That points to further big price gains. You can find out which mining stocks I recommend buying now in my stock market letter Crisis-proof investing – now 30 days free of charge.

This investment is just as attractive as gold two years ago

Last week’s November issue of Crisis-Safe Investing Roland Leuschel and I discuss another extremely attractive equity sector in detail. It is similarly bombed out, undervalued, unloved – and thus extremely promising – as the precious metals sector two or three years ago.

This is exactly what bottomings look like on the stock markets. This prepares the ground for big price gains. As a long-term oriented value investor, you should make your first purchases here. Because now the time has come to position yourself for the next long-term bull market in a sector that is currently still unpopular and largely ignored and where correspondingly large price gains are emerging.

I wish you a nice weekend,

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Claus Vogt, Editor-in-Chief of Crisis-Safe Investing

P.S .: With selected silver mines you can make big bucks in the coming months – no matter who is in charge of the White House.

P.P.S .: If you want to get through this crisis week after week, please request the free Claus Vogt market commentary here today easily with your email at.

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