Gold Has Bottomed, The Next Price Target is $2,400
Gold has just completed a 4-year correction and consolidation that has carved out a technical bottoming process. Gold is currently very oversold and resting at support near the all-in cost of production. Our analysis suggests that the next wave higher will push the gold price to a minimum of $2,400 and maximum of $3,600 by the end of 2016. The $2,400 price target is the inflation-adjusted all-time high for gold and would match the previous advance. The $3,600 price target would be consistent with the prior pattern of advances, whereby each upleg doubles the magnitude of the previous upleg.
If you think our price targets are bullish, consider that John Williams of Shadowstats.com forecasts that gold needs to climb to nearly $9,000 and silver to over $500 per ounce to match the inflation-adjusted highs attained during 1980. All of the fundamental conditions that generated gold’s 1980 high are much more severe today.
Bearish sentiment is currently dominating investor psyche and most people cannot imagine a push to $2,400 or higher. Yet, there is historic precedence for such a move and both the fundamentals and technicals support such a powerful advance.
Fiat currencies are rapidly declining in value versus real assets, as the Federal Reserve, ECB and Western governments are printing and borrowing with reckless abandon. This race to debase is creating ripe conditions for inflation and the potential for hyper-inflation in the coming years. Adding fuel to the fire, Russia, China and other BRICS countries around the world are starting to bypass the dollar in international trade. Indeed, it appears the days of the dollar as world reserve currency are numbered!
Profit from Leverage in Undervalued Mining Stocks…
While gold and silver will be excellent investments and we advocate holding some physical metals in your possession, the biggest profit opportunity is with mining stocks. The best-in-breed companies are now more undervalued than at any point since the start of the bull market! Sentiment has been extremely bearish, which is precisely when large upside moves historically tend to occur. The following chart shows the gold stocks index (HUI) vs gold, depicting just how undervalued mining stocks have become.
Meet the Editor, Jason Hamlin…
My name is Jason Hamlin and I spent nearly a decade in analytics for the world’s largest research firm. I quit the corporate world shortly after the bull market in precious metals got underway and was successful as a private investor and helping family members turn around their portfolios. I decided to turn my focus from helping fortune 500 companies to helping everyday investors on Main Street struggling to achieve strong gains in the stock market.
My investment philosophy takes into account political, historical and socio-economic factors to determine macroeconomic trends and isolate the sectors that stand to gain the most. I then apply fundamental and technical analysis, as well as proprietary models, to find the companies within these sectors that will outperform their peers.
Core Investment Principles
At present, the following beliefs are at the center of my investment philosophy and drive my investment strategy:
1) High inflation and devaluation of the U.S. dollar are inevitable.
2) Political instability and growing distrust of fiat currency will favor gold.
3) The stock market rally is artificially-induced and is therefore unsustainable.
4) Gold and silver are real money and will return to having a greater role in global finance.
5) Precious metals are significantly undervalued and the gold bull market is far from over.
6) It is wise to hold a portion of your wealth in physical bullion within your possession.
7) Mining stocks are oversold, undervalued vs. the metals and will offer leveraged gains.
Lastly, I believe in the companies that I write about and never accept payment to pump a particular stock, eliminating any conflict of interest.
Get Our FREE Gold and Silver Updates
Much of my research is published for free on this site, so make sure to subscribe to our FREE email alerts below. When we spot investment opportunities or there is breaking news, you will get a special alert direct to your inbox.
Take Your Investing to the Next Level with our Premium Membership…
The Gold Stock Bull Premium Membership is designed to help you maximize returns in the commodity markets. We focus on precious metals, but also cover energy, agriculture and other strategic sectors.
The GSB Contrarian Gold Report will help you navigate these markets, provide buy/sell signals, highlight the companies that we believe will generate the greatest returns and provide in-depth fundamental and technical analysis. You will also be able to view the Gold Stock Bull portfolio in real time, receive detailed trade alerts whenever we are buying or selling and have personal access to the editor for any questions that you may have.
For around $1 per day, you will get all of the following:
✓ Instant Access to View the Gold Stock Bull Portfolio
✓ Email Trading Alerts Every Time That I Buy or Sell
✓ The In-Depth Monthly Newsletter and Technical Charts
✓ Premium Member Guides and Q&A Sessions with the Editor
What subscribers are saying about Gold Stock Bull:
Joining the premium service has made a huge difference to my portfolio over the past 6 months and I couldn’t be happier. Thank you, thank you, thank you! – Linda S. (Miami, FL)
With a keen eye for picking breakout stocks and detailed research into emerging miners, this is hands down the best investment newsletter I have ever read. Keep up the good work! – Paul K
Analyzing and predicting market movements is a passion of mine and I have a sincere desire to help as many people as possible reach their financial goals. I am committed to making this service as valuable and profitable to you as possible and look forward to welcoming you to the service. Click the button below to get started now!
Still not sure? Let me make this easier… you can now try the service for 30 days risk-free! If for any reason you are not 100% satisfied, simply email us within the first 30 days and we will promptly refund your entire payment. You get to keep the newsletter, our model portfolio, stock picks and premium member guides, all for FREE!
Jason Hamlin is the founder of Gold Stock Bull and publishes a highly-rated investment newsletter focused on strategies for profiting in the bull markets in gold, silver, energy and agriculture. Mr. Hamlin has a background analyzing charts and trends for the world’s largest market research company, is versed in fundamental and technical analysis and has consulted to Fortune 500 companies around the globe. Jason is a cycles investor, student of Austrian economics and speaks regularly at investment conferences throughout North America. The Gold Stock Bull newsletter is focused on finding junior mining companies that are undervalued relative to their peers.
If you are new to gold investing and want a quick introduction, I recommend you start by reading “Why Invest In Gold?“. The premium membership is designed for all levels of investors from beginners to experts. If you have any questions, check out the “Frequently Asked Questions” or send me an email.