The Gold Report
We feel that gold and gold stocks are in for a sizeable correction in the next week, or possibly in the next few weeks. We have seen a massive rally in gold stocks, with the HUI rising over 40% from its August lows.
However to us many gold stocks look overbought and we have sold a proportion of our holdings, although we have maintained a significant core position, in anticipation of a correction across the board in precious metals. After this correction, we intend to buy back the shares we sold at lower prices, enabling us to purchase a larger overall position. For example if we sold 1000 shares at $20 this gives us $20,000. If the shares fall to $15, we reinvest our $20,000 and this now buys us over 1333 shares, so giving an increase of 33% on our original position.
We still are very bullish on gold and silver in the longer term, and we see gold making $1000 and silver reaching $20 perhaps sooner than you think and in a few years, we see no reason why gold could not be at $3000 and silver at $100.
Notable Quotes
"ROG's Burkina Faso deposit will be easy to mine, inexpensive to build and very profitable." (5/20/13) Roxgold Inc. - The Gold Report Interview with Brent Cook More >
"AMM is the kind of company an investor wants to be involved with." (5/20/13) Almaden Minerals Ltd. - The Gold Report Interview with Brent Cook More >
"ATY had some very good drill results and its VMS project is certainly economic." (5/20/13) Atico Mining Corp. - The Gold Report Interview with Brent Cook More >
"I like LYD because of its simple, low-capex project." (5/20/13) Lydian International Ltd. - The Gold Report Interview with Brent Cook More >
"TMM released record production of 28.3 Koz Au for the quarter." (5/8/13) Timmins Gold Corp. - Joseph Fazzini, Dundee Capital Markets More >
Will Gold Stocks Correct Next Week?
Source: Sam Kirtley, Seeking Alpha (10/16/07)
...many gold stocks look overbought and we have sold a proportion of our holdings, although we have maintained a significant core position, in anticipation of a correction across the board in precious metals.
More Experts
"Drill results from BAR's Martinière indicate a growing, fertile gold system." (5/13/13) Balmoral Resources Ltd. - Eric Lemieux, Laurentian Bank Securities More >
"SAS had a strong cash position of $32.1M at the end of Q1/13." (5/13/13) St Andrew Goldfields Ltd. - Eric Winmill, Casimir Capital More >
"GRG has an exciting high-grade silver discovery and just released an NI-43-101-compliant resource estimate with 105 Moz Ag eq." (5/17/13) Golden Arrow Resources Corp. - The Gold Report Interview with Thibaut Lepouttre More >
"THO's Escobal remains on budget and on schedule; its progress is encouraging." (5/10/13) Tahoe Resources Inc. - Chris Thompson, Raymond James More >
"We reiterate our Outperform rating on P and it remains one of our top picks." (5/10/13) Primero Mining Corp. - Shawn Campbell, Macquarie Capital Markets More >