Dear Reader Two weeks ago gold dropped almost

first_imgDear Reader, Two weeks ago, gold dropped almost back to where it was last December. The resulting negative sentiment gripping the precious metals market and indeed the whole metals and mining sector is profound and far reaching—as bad as last December, or worse. Which is odd, because the better stocks have not returned to their December lows. Producers have cut costs, explorers and developers with quality assets have been able to raise the money needed to advance, and we’ve actually been able to book some profits this year. But that’s typical; markets tend to overreact, and that, of course, creates opportunities. That said, the Casey consensus is now that broader markets are set for a major correction—much greater than the 1,000 point slide the Dow has seen over the last month. We may at long last be on the verge of leaving the eye of the global economic storm, as we’ve called it. Our colleagues at The Casey Report are preparing a special report on this subject, which we will send to all paying subscribers. But whether or not a “waterfall event” is about to hit Wall Street and beyond, if we’re facing the possibility of another 2008-type downturn, it’s only prudent to rig for stormy weather. What does that mean? It means rebalancing more toward cash and culling underperformers to that end—especially companies low on funds or losing money. Being contrarians, however, we also want to prepare to go bargain hunting. It’s in this context that I want to share some price-to-book-value research we’ve done, as you’ll see below. It’s important to keep the difference between price and value in mind when the two diverge. And they already have. Things could start moving very quickly in the weeks ahead. We’ll do our best to keep you appraised and advise you on how to proceed. Subscribers should check our portfolio pages frequently this month. Before we get to today’s article, however, I’m pleased to announce our new documentary-style film on the only way for Americans to legally minimize their taxes without leaving the US. It’s called America’s Tax-Free Zone, and you can watch it for free. As I’m sure longtime readers can guess, the focus is on Puerto Rico’s new tax incentives. Doug Casey, Peter Schiff, and other experts walk viewers through the facts and what to do. I hope you enjoy the video; I’d love to have more of you become my neighbors here in the US Caribbean. Now, on to the main event. More next week, Sincerely, Copper 3.01 3.14 3.30 Rock & Stock Stats Last One Month Ago Gold Producers (GDX) 20.69 23.43 24.50 Gold 1,238.29 1,234.90 1,323.00 Gold Junior Stocks (GDXJ) 32.47 37.60 37.38 One Year Ago Silver 17.27 18.66 21.95 Louis James Senior Metals Investment Strategist Casey Research Gold (SGE) 1,243.72 1,249.15 1,302.08 TSX (Toronto Stock Exchange) 14,227.68 15,458.88 13,036.36 Silver Stocks (SIL) 10.39 11.98 12.80 TSX Venture 810.13 972.51 951.58 Oil 82.92 93.20 100.87last_img

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