Late Saturday evening we published and sent a 32-page update to subscribers. In this update we reiterated our near-term bearish outlook due to the continued relative weakness in gold stocks and Silver as well as a sudden increase in bullish sentiment in Gold as Gold nears very strong resistance. We also noted the potential for a snap-back rally in the reflation theme, which is extremely oversold. That could pressure Gold in the short-term.
We also noted the importance of the Gold/Equities ratio which could be nearing a major move before the end of the year. A correction in the stock market could mean there are no more rate hikes (other than June) for the rest of the year. That would be a bullish catalyst for that ratio and gold stocks. However, a continued rise in the stock market with no further deterioration in economic stats, could lead to multiple rate hikes which would pressure precious metals for the rest of the year.
This update included subscriber questions answered (p8-10) and updates on a handful of companies (p5-7). One company holds a district scale land package in a good jurisdiction. They are trading at a sub $50 Million market cap and we think they have 3-5Moz potential in 3 years. Another company has corrected recently but boasts strong potential for 3M oz Au. It has under a $100M market cap. Another one has been hurt by the GDXJ rebalancing. We think the stock has 5-fold potential in the next 2-years if Gold returns to $1800/oz. We noted one of our recent buys and favorites which reported good news recently. It remains extremely cheap and has 10-bagger potential. Finally, we noted a company very high on our watch list, which has a sub $15 Million enterprise value but has a joint venture with a major.
Consider a subscription today as we can help you get positioned in the junior companies with significant upside potential at reasonable entry points. This is exactly our plan in the months ahead. We discuss and cover what we are actually buying, unlike the majority of our competitors.
Have an active subscription? Login to download your premium file: