Optimistically Dark When It Comes To Gold

I’m here at the Sprott-Stansberry Natural Source Symposium in Vancouver, Canada.

And exactly what a day so far!

Robert Friedman, Founder of Ivanhoe Mines [TXV:IVN] delivered an outstanding presentation. I saw the actual legendary resources veteran present last year in Melbourne. And he never ceases to impress! Indeed, he’s one of the best salesmen I’ve ever seen.

Rick Rule, Ceo of?Sprott?US Holdings, questioned him. Rick has more than 35 years’ experience in the resources game — another living legend in the business. And it was nice to hear that he’s bullish on the same resource sectors that I think offer the greatest potential over the next couple of years.

If you’ve been following me in Money Morning though, you probably know that right now I’m extremely bearish on most resources. But while I’m bearish resources, I see immense value!

So whenever Rick Rule says that he or she ‘loves a horrible resources market‘, I understand why…

Check out this chart

To understand on your own, check out this chart. It shows the performance of the junior gold mining sector from the US S&P 500. Which performance is shockingly bad. While the US S&P Five hundred is up nearly 70% from Next year, junior gold stocks are down nearly 90%!

Click to enlarge

I obtained this chart from David Sjuggerud, Editor of True Wealth at Stansberry Study.

As I watched Steve existing my jaw dropped. You would think he’s got a working very ball. Not only did he or she tell his readers to begin buying stocks at the GFC lower in 2009, he got them in to real estate in 2011, and biotechs within 2014 — before the bull market. He ended up making his visitors 800% on the biotech trade.

But what’s much more extraordinary was that he cashed out of the Chinese stock market lately. He bought at the bottom last year, when the mainstream was whining about Chinese ghost cities and over-leverage, and he just offered for a net gain of 86%.

As you can see, the best strategy is to disregard the mainstream. Instead, become a contrarian. Or else you’ll just be part of the 99% that lose money.

Talking about contrarians, Steve’s right now turning his attention to gold stocks. Given his history, this is a good signal…

Now, before I go on, if you don’t know already, I am extremely bearish on gold stocks. And Steve does agree with me. While his attention is actually on the gold sector, he’s not buying…yet.

He’s not even attempting to pick the bottom. This is because David is a conservative value investor. For this reason, he wants to buy once the uptrend resumes.

I, on the other hand, am looking to identify the bottom using technical and basic analysis. The bottom normally comes when everyone is extremely, and overly, bearish. And we aren’t there yet. This is why, for the past 1 . 5 years, even when gold was up to US$1,350 per ounce, I have been warning that we’ll view it fall to US$931 per oz.

But either way I’ll start recommending gold stocks soon — even if it goes below my target, which is looking more likely.

It requires courage to buy when other people are selling, but sometimes it just makes sense to buy what everyone else hates.

Rick Rule — these are the times when you are making the big dollars

Rick Rule has a powerful opinion on this. He says which ‘during a resources bull marketplace, everyone wishes they understood exploration companies when they created the discovery drill hole. But in a bear market, like we’re in today, nobody…absolutely no one…wants to learn about these companies. And this is the best time to purchase — one to one and a half years in front of everyone else.’

And that’s exactly what I’m doing. And have been performing for Resource Speculator readers. I’ve been preparing all of them this year for next year, after i believe we’ll see the resumption of the resources bull market. I’ve even pinpointed where In my opinion the bottom will be for my subscribers.

As such, I suggest getting your jobs ready today. If you pick the best stocks in the best industries, you’ll set yourself up to make the a lot of money. And if you want to know the best sectors, click here.

I’ll be back with more information from the conference tomorrow.

Regards,

Jason Stevenson,

Resources Analyst, Resource Speculator