This article was contributed by the Wealth Research Group.
Since June 2019 (the past 16 months), 8 gold and silver companies that have enjoyed triple-digit gains have been featured in these pages. Among them, one company has even rallied over 1,000% — companies that we’ve been following for 3-4 years have seen 600% and 700% appreciations, while others have been uplisted to the NYSE. Truly, in the past 16 months, we could do no wrong.
Those who were brave enough to look the devil in the eye in March and April and capitalize on the panic – when TV screens the world over were broadcasting people dropping dead on the streets of China – have been able to enjoy generationally-high returns in just 6-8 months — buying the crash was, as it always is, the best opportunity to make sensational returns.
But, since gold peaked in August, nothing has worked in the mining sector. At least three companies that have been featured here since then, as potential opportunities for you to independently watch, study, and research, are now 30% – 50% cheaper than they were when these were first presented here, along with their business models. It’s a key lesson in the importance of trading tactics, such as (1) splitting purchases into increments in order to sustain blows better, (2) taking time to build positions, (3) being early, and (4) tolerating risk and volatility.
Somehow, in the past three to four weeks, investors have become convinced (so much so that they’re willing to swear by it) that Joe Biden is heading towards a landslide victory.
Courtesy: Zerohedge.com
As such, they’ve created the following script in their minds:
* A Biden victory is going to make it extremely difficult for Washington to achieve anything between now and the January inauguration.
* No stimulus bill will be passed. If one does pass both parties’ demands, it will be small.
* Therefore, we have no way of knowing how things will develop. In the meantime, we (as in the investment community) will settle for a large cash position.
As you can see by the chart above, everyone and their mama is betting on higher interest rates, for the time being.
I’ve been investing since June 2000, when at age 16, with three years’ worth of babysitting and basketball tutoring savings (which I’ve gathered since the age of 13), my personal banker had convinced my parents that I was mature enough to invest money in the markets. He got them to sign a waiver, so that I, a minor at the time, could buy equities.
Rarely have I made a decision in the twenty years since, which had anything to do with who was in the White House, since 73% of my net worth is tied to long-term strategies, not to cyclical trades. But when it comes to mining stocks, unless one is willing to absorb the risks of timing his trades wrongly and seeing -50% temporary plunges (which, at times, could even turn into permanent ones, cutting losses when things go south and moving on), one SHOULD NOT ever be in the commodities sector.
Even the world’s best gold stock can’t appreciate in price when gravity is pulling it in the opposite direction. Trading mining stocks boils down to the art of cutting losers fast and sticking with winners for the long haul.
THEORETICAL EXAMPLE: (Total portfolio size $50,000):
* Proper Asset Allocation: Speculative portfolio size (15%, $7,500).
* Proper Diversification: Ten companies, each making up $750, or 1.5% of total portfolio.
* Proper Position Sizing / Stop Loss: Each investment is made in increments of three – 33% initially ($250), additional 33% ($250) if/when the stock falls 20%, last 33% ($250) if/when stock falls another 20%; stop-loss to be set to 36%, below FINAL cost-basis.
Breakdown: Company (A) trades for $1.00. Initial outlay is made ($250 @ $1.00). The stock falls to 80c, so secondary outlay is made ($250 @ $0.80). Commodity prices continue dragging mining stocks down another 20% to 64c, so final outlay is made ($250 @ $0.64). Overall cost-basis: $0.813. Stop-loss is set to: 0.813 *0.64 = $0.52.
Risk/Reward: If the company does what it sets to do: 500% potential returns – (don’t do for less). If company (A) fails or if the commodity cycle turns bearish, potential loss: 36%.
In numbers: $1,000 could turn into $5,000 (winner) or to $640 (loser), so the equation is risking $360 in order to potentially make $4,000, an 11:1 risk/reward set up.
The biggest investment mistake people make, in my opinion, is buying the whole position on day 1.
Right now, the entire investment community is sure of a Biden victory, which will lead to a few months of wait-and-see until the inauguration.
Courtesy: Zerohedge.com
There are long-term trends in place, mixed with short-term sentiment moves. Right now, within the context of a bull market for gold and silver, there’s a short-term trade of higher bond yields. This will hurt precious metals.
Gold could fall to $1,820 and silver to $23/ounce. The mining stocks could undergo a brutal correction phase.
One has to make an individual decision, which boils down to this: Am I willing to stomach a rollercoaster ride until gold surpasses $2,000 again and reaches green pastures?
If one answers YES, then this weakness is a buying opportunity.
If one answers NO, then this weakness is a chance to sell and come back later, when the momentum is strong again.
It doesn’t look good for precious metals in the immediate-term, but looking past January 2021, the case for $2,500 to $3,000 gold is well intact, according to the world’s most sophisticated investors:
Courtesy: U.S. Global Investors
The Ball Is In Your Court!
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I know for an absolute fact that QAnon is a gas-lighting psy-op, because I reported to the White House a conspiracy of human trafficking and forced child labor that was posted on the
U.S. Treasury Departments website, immediately after Mnuchin said that he would make the Treasury the most transparent in history! There was a link at the bottom of the site for small businesses, which I clicked on, wondering why it was even there. This led to a minority business women link, which had a document with Loretta Lynch’s and Jack Lews signatures on it for minority women that did business in countries that employed forced child labor, child labor, and forced adult labor and was seeking oral only contracts for gold, oil, and other natural resources. I called the White House to report the suspicious nature demanding to know why oral only contracts were sought after in combination with forced child labor, obviously it was oral only because they did not want any written record of it! There was also a link for it. The White House requested that I email the link to the President which I did and it was the removed, but the link was still active, so I called the White House again, and was posting this on various News Websites including Zero Hedge and Fox News. Nobody would report it. Shortly after, my first phone was hacked and Vault 7 technology and DEWs started being used on me.
Trump is making it worse. Trump is not trying to end it! If you have any doubt about that, consider that the Police were actually busted for running child porn websites, and Trump covered for them claiming that they were trying to bust pedophiles, which is totally unnecessary to have a for profit bitcoin child porn website to bust pedophiles, and also consider that TOR is totally run and funded by the government, where almost all illicet activity online occurs! There are over 500,000 missing persons in America under a total state of surveillance!
Trump is full of shit!
Gas-lighting is a method of implying that something will happen or is being done without actually stating in non-anonymous, straight forward, plain English that it is being done. It appeals to hope and faith, or on the opposite end of the spectrum, veiled threats used in order to control behavior. That is the QAnon psy-op. It is bullshit!
Andrea Iravani
I tried to post that on Unz on a QAnon article and it would not post again because of hacker saying too much commenting take a break, even though I did not post any comments today, and it also said
phpwordpress error, so it did not reach the server.
How could anyone be stupid enough to fall for QAnon?! It is hard to believe that people are actually that fucking stupid!!!
Truly a tragedy that people are so mentally inept!
Andrea Iravani
I think many people simply don’t want to hold paper gold, period. Paper money, paper gold/silver are simply paper with the same concerns as any other stock. For them, there is no difference.
Here is a classic example of a slick marketing psy-op attempting to persuade people into believing that if capitalism did not exist, that we would be living in a Utopian paradise where only humanitarian goals would be implemented by the power structure. They have a very strong motive to persuade people into accepting this myth which can be proven to be a complete lie. They want to keep the system in place. They want to keep the people in place. They do not want to be held accountable for the actual problem, their own crime spree. It wasn’t their fault, it was the system’s fault.
This article ironically uses the tobacco industry as an example of capitalism run amok.
This article ironically does not acknowledge that Cuba, probably the most communist country in existence or at least on par with North Korea has sold Cuban cigars for centuries!
The problem is corruption! Greed, and corruption can still exist in communist and socialist countries, and it has, and it still does. We know this to be a fact because China, Cuba, and Venezuela are all involved in The Big Lie, The Scamdemic, If capitalism is the problem, there would not be corruption in socialist and communist economies.
Global Research has to their credit been a valuable source of scientific information regarding the Scamdemic, but why it is that Global Research refuses to hold China, Cuba, and Venezuela accountable for scientific fraud and extreme human rights abuses as a result of the Scamdemic is seriously problematic. They blame America, yet will not acknowledge that if America was actually as in control of the world as they claim that it is, America’s economy would be growing at a rate that surpasses China’s, and that America would not have the deficit problems, or the financial problems that it has.
Most economies in the world are a combination of socialism, communism, capitalism, mercantilsm, feudalism, and agrarianism.
These are slick marketing tactics.
China allows private property ownership, private business ownership, and China also has a stock market, so exactly what is not capitalism in China is a mystery! China also has billionaires and millionaires!
This is all a slick marketing fraud! Should we blame it on capitalism, communism, socialism, or corruption?
https://www.globalresearch.ca/capitalism-double-billing-we-pay-future-stolen-from-us/5727588
Andrea Iravani