Junior Gold Stocks Set To Soar

Gold World (02/23/2009)
Calling tops and bottoms consistently is impossible for any investor or analyst, but we can take another lesson from J. Paul Getty in this regard: Getty really didn't give too much heed to market timing other than buying when things were "really bad" for a sector. He knew the key was to buy low when nobody was interested and have the patience and financial staying power to wait things out. Over time, as the market for that sector improved and people came piling in, he would sell and look like a genius.

I would say that things are definitely desperate enough to warrant a look-see at buying value in junior mining stocks, currently. But, could things go lower than where we are now? Absolutely. But buying stocks at the exact moment of bottoming out is not statistically likely.

Do any of us have the courage to realign our portfolios and buy the best values of the moment? I think those who do and those who take the longer-term perspective will make the biggest returns from our sector yet.

These are critical times we are living in. The choices we make right now regarding our finances may be some of the most important ones we make in our lifetime.

I repeat my mantra that owning physical precious metals along with the right set of junior mining stocks is still the best way to protect oneself from the financial hell-storm that is getting worse by the week.

With all that is happening, particularly the level of desperation under which the Federal Reserve and U.S. government are operating, precious metal prices are going to detach from the general market activity at some point and absolutely soar.

As the precious metals make their move, and they will in a big way, a select group of junior mining stocks are going to perform phenomenally well! Nibbling at the best values in our current market is probably a smart thing to do over the next few months.

Getting rid of the deadwood is also important as we realign our portfolios to match the changes the market has dictated. And if after making those changes we have the staying power and patience to weather the storm, then I believe things will work out in our favor in the end.

 PRINT THIS PAGE   EMAIL THIS PAGE

Under SEC rules, analysts are required to disclose their interest in securities that they cover. We strongly encourage you to contact them to understand any potential conflicts of interest they may have.

Related Quotes: