Rick Rule: “Eric Sprott…is as aggressive as I have seen him since the year 2000…he is as is his style, the style that has made him a billionaire, very aggressively going into the marginal junior producers…companies that barely make money at $1400, but would be making $800 or $900 an ounce if the gold price went higher….
Eric believes that gold within 12 months will certainly be above $2000…[and] that this is the year where his portfolio will see ten to fifteen–10 to 20 baggers.”
From Tekoa da Silva, Bull Market Thinking:
In reflecting on the past month—it’s been quiet in the metals and mining space from a sector-wide pricing standpoint. Most mining shares are treading water, or remain trapped in decline while the metals continue sideways.
What’s fascinating to note is the emergence of extreme opposing opinions on which direction gold is heading next. Jim Rogers suggests the possibility of $1000 oz., and regular interview guest, technical gold trader Gary Savage expects the same.
In weekend commentary Gary suggests the short-term possibility of $1200 oz. gold, followed by a retest of $1000 oz.–to be created by manipulative hedge fund managers driving the price down in order to enter large positions ahead of the bubble-phase.
Rick Rule recently noted the possibility of an October black swan event, but in contrast to Jim and Gary, he indicates that in terms of mining shares, “The damage [to] the juniors has been extensive enough that I am personally of the view that the very best [companies] are cheap enough.”
Regarding his boss, Rick said, “Eric Sprott…is as aggressive as I have seen him since the year 2000…he is as is his style, the style that has made him a billionaire, very aggressively going into the marginal junior producers…companies that barely make money at $1400, but would be making $800 or $900 an ounce if the gold price went higher.”
Rick further added that, “Eric believes that gold within 12 months will certainly be above $2000…[and] that this is the year where his portfolio will see ten to fifteen–10 to 20 baggers.”
While the viewpoint of gold’s direction over the next 3-12 mos. remains conflicted, one thing is for certain: the long-term fundamentals are becoming stronger, and physical supplies of gold are disappearing.
It is therefore in your editor’s opinion, that dollar-cost averaging programs be considered, as they will succeed no matter where the price of gold goes over the next 3-12 mos. Through disciplined accumulation, any downside price shocks will simply offer more opportunity to reduce cost basis. For more commentary on this issue please read this article.
Furthermore, while Eric Sprott may be accumulating gold producers which barely make money at $1400oz, your editor (much like Rick Rule) is on the more conservative side, and suggests companies that will continue to be economic or will “break-even” if gold goes to $1000oz or even a bit lower.
A handful of those companies are contained in what I’ve called the Da Silva “Legendary Mine Builders” Index, and as a special thank you for supporting my work, I’d like to offer you that list for $50-OFF the regular price.
The junior gold mining companies contained in that list have substantial cash reserves, no debt, high-grade deposits, and are led by the industry’s top wealth builders.
To get a copy of that report at $50-OFF, simply click HERE.
As a final note–it is clear the market is waiting for a catalyst. Regardless of what it ends up being, by continuing to accumulate financial insurance (gold) and the best of the best companies that can weather any storm, it is your editor’s opinion that we will come out ahead no matter what happens in the short term.
That’s all for now. Best in health, wealth, and happiness in the new week & month ahead!
Tekoa Da Silva
Bull Market Thinking