By Dudley Baker
First we want to welcome all of the new subscribers joining us. Your timing could not be better and we appreciate your confidence in subscribing to our unique services.
So, how about it?
Are you having regrets of investing in the resource sector?
I’m sure many of you are questioning your decision and no doubt you have plenty of company right now.
But we are confident that the markets will be turning soon to the upside and savvy investors should now be well positioned in a basket of resource stocks and/or warrants. You will be excited as other investors come in at higher prices and eventually drive even the dogs and cats to unimaginable heights.
I realize this sounds crazy to you, but I always remember the quote of the legendary Doug Casey, “the day will come when no resource stock will sell for less than $5.”
I am of the opinion that this could happen sooner than most analysts/newsletter writers predict and see the potential of a monster market over the next 12 to 24 months.
First, we need to get this bottom in place for gold and resource shares.
Is the bottom all ready in place?
Yes, it could be, but we will know soon.
Let me give you a couple of quotes from two of our favorite newsletters:
The Aden Forecast — Pamela & Mary Anne Aden:
“. . . you can see that today’s bull market hasn’t yet begun to move in bubble explosive conditions. It is getting closer though and the timing suggests we could see the start of the bubble phase by next year. There is no fever like gold fever and the fever has started yet.”
The Speculative Investor — Steve Saville
“It’s likely that the eventual breakout from this range will be to the upside, but we obviously can’t rule out the possibility that the breakout will be to the downside.”
“There probably wouldn’t be much follow-through to a downside breakout, the reason being that the speculative net-long position in gold futures is near a multi-year low. The relatively small size of the speculative net-long position would reduce the extent of ‘long’ liquidation in the unlikely event of a break below support.”