It was a highly profitable year for the Gold Stock Bull model portfolio, which closed the year with a gain of 59%. This was down from last year’s gain of 133%, but still significantly better than the S&P 500 (+13%), SPDR Gold Trust ETF GLD (+29%) or Market Vectors Gold Miners ETF GDX (+33%).
The GSB portfolio included 56 trades for the year or just over one trade per week. Our top three trades gained 100%, 96% and 56%, while our biggest losses were 16%, 14% and 12%, as we used stop orders to limit losses. Our largest gains came primarily from junior silver miners and rare earth companies, while our largest losses were from agriculture plays too early in the year and incorrectly timed short-term trades.
I remain convinced that precious metal prices will continue much higher during 2011 as deflationary forces give way to inflation, quantitative easing continues, physical buying picks up and the world loses faith in the dollar and the U.S. government’s ability to repay its debt. I also expect corrections to be shorter and less severe that in the past as it appears that much of the manipulation by large investment banks has ended. I will be looking for gold to reach towards $1,900 and silver towards $42 during 2011 and believe we will see record gains for junior mining companies.
While most investors would be more than delighted with our 2010 gain of 59%, I am committed to improving this number in 2011, learning from our mistakes and refining our trading strategy to achieve an even higher return. I work tirelessly analyzing hundreds of junior mining companies to find the select few that will generate the type of double or triple-digit returns that our members have become accustomed to seeing.
To find undervalued miners before the herd does, sign up for the Gold Stock Bull Premium Membership.
You will be able to view the GSB portfolio in real time, receive the monthly contrarian newsletter and get email trade alerts every time that I buy or sell. Membership is only $39 per month and you can cancel at anytime if you are not satisfied.