Rich with gold stocks
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It is still possible, but the window begins to close. Gold and gold stocks fluctuate strongly to each other, which only few investors know. Sometimes goldstocks are expensive as in 1996, 2004 or 2011 and sometimes they are extremly cheap as in 1993,2000,2009 or as 2020 (see graphic below). Everyone who has invested some 10,000 Dollars at such lowpoints could become a millinaire within 3 years. This bull market in goldstocks , which began in january 2016 at a 70th year low, will probably become the largest bull market ever.
It is still possible, but the window begins to close. Gold and gold stocks fluctuate strongly to each other, which only few investors know. Sometimes goldstocks are expensive as in 1996, 2004 or 2011 and sometimes they are extremly cheap as in 1993,2000,2009 or as 2020 (see graphic below). Everyone who has invested some 10,000 Dollars at such lowpoints could become a millinaire within 3 years. This bull market in goldstocks , which began in january 2016 at a 70th year low, will probably become the largest bull market ever.
Source :http://www.visualcapitalist.com/bre-x-scandal-history-timeline/
By observing the gold stocks / gold ratio you can see that goldstocks are still cheap - below the 0,2 goldstocks/ gold ratio. (See the graphic below.) If, for example, you had bought BRE-X in 1993 and sold it in 1996, you could have made 750,000 Dollars from 1000 Dollars. Certainly an extreme case, but many gold stocks have developed similarly during such bull markets.
Goldstock bull market from 1976 to 1980:
NRD Mining = $ 0.05 (Low) - $ 19.1 (High) = Gold Stock Increased 382x (38200%) = $ 1000 investment turned into $ 382,000
Silverstack Mines = $ 0.1 (Low) - $ 36 (High) = Gold stock rose 360 times (36600% = $ 1000 investment turned into $ 360,000
Belmoral Mines = $ 0.2 (Low) - $ 40 (High) = Gold Stock Increased 200x (20000%) = $ 1000 investment turned into $ 200,000
So what is to be done now? We simply have to invest in gold stocks, which are likely to spark a similar buying psychology like BRE-X. You must therefore invest in gold stocks with a good story. The good story is great exploration potential or very large resources.
In my opinion, gold shares are still undervalued 3-fold at the moment. Firstly, due to the manipulation of the gold price, which, adjusted for inflation - depending on how one calculates - should be between $3000 and $5000. Furthermore, gold stocks in general are extremely undervalued in relation to gold. And junior and exploration companies are again extremely undervalued compared to pure gold producers. (See GAP in the first chart below).
Goldstock's with such potential can be found in the 1000 Bagger Report. At this point I would like to point out once again that investing in gold and silver stocks is very risky, you could lose your invested money. Overall, you should not invest more than 10 to 15% in gold stocks. Consider this investment as a speculative supplement or as a gold and silver maximization tool.
1000 Bagger Report
Disclaimer : I am not a financial advisor. This article is therefore to be regarded as completely non-binding information. The article is for information purposes only and does not constitute a recommendation to buy or sell. It is neither explicitly nor implicitly an assurance of a certain price development of the mentioned financial instruments. It is not a request for action. Any liability of any kind for the content or actions of the readers derived from it is expressly and completely excluded. This also applies to all links in this list, for whose content any liability is also excluded.
By observing the gold stocks / gold ratio you can see that goldstocks are still cheap - below the 0,2 goldstocks/ gold ratio. (See the graphic below.) If, for example, you had bought BRE-X in 1993 and sold it in 1996, you could have made 750,000 Dollars from 1000 Dollars. Certainly an extreme case, but many gold stocks have developed similarly during such bull markets.
Goldstock bull market from 1976 to 1980:
NRD Mining = $ 0.05 (Low) - $ 19.1 (High) = Gold Stock Increased 382x (38200%) = $ 1000 investment turned into $ 382,000
Silverstack Mines = $ 0.1 (Low) - $ 36 (High) = Gold stock rose 360 times (36600% = $ 1000 investment turned into $ 360,000
Belmoral Mines = $ 0.2 (Low) - $ 40 (High) = Gold Stock Increased 200x (20000%) = $ 1000 investment turned into $ 200,000
So what is to be done now? We simply have to invest in gold stocks, which are likely to spark a similar buying psychology like BRE-X. You must therefore invest in gold stocks with a good story. The good story is great exploration potential or very large resources.
In my opinion, gold shares are still undervalued 3-fold at the moment. Firstly, due to the manipulation of the gold price, which, adjusted for inflation - depending on how one calculates - should be between $3000 and $5000. Furthermore, gold stocks in general are extremely undervalued in relation to gold. And junior and exploration companies are again extremely undervalued compared to pure gold producers. (See GAP in the first chart below).
Goldstock's with such potential can be found in the 1000 Bagger Report. At this point I would like to point out once again that investing in gold and silver stocks is very risky, you could lose your invested money. Overall, you should not invest more than 10 to 15% in gold stocks. Consider this investment as a speculative supplement or as a gold and silver maximization tool.
1000 Bagger Report
Disclaimer : I am not a financial advisor. This article is therefore to be regarded as completely non-binding information. The article is for information purposes only and does not constitute a recommendation to buy or sell. It is neither explicitly nor implicitly an assurance of a certain price development of the mentioned financial instruments. It is not a request for action. Any liability of any kind for the content or actions of the readers derived from it is expressly and completely excluded. This also applies to all links in this list, for whose content any liability is also excluded.
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HUI/Gold Ratio: The ratio shows the ratio between gold and goldstocks. If the ratio is low, for example 0.10, goldstocks are very cheap, if the ratio is high like for example 0.60 goldstocks are very expensive. A great indicator to know when gold stocks are expensive or cheap. One could also use the comparison of the ever-changing distance between Earth and Mars. Sometimes Mars is only 56 MIO kilometers away, but then again 401 Mio Kilometers.