Last week we talked about the potential gold-buying opportunity of the decade, where I gave you five reasons to be optimistic about gold. (Six reasons, if you include silver.)
And then, late in the week, gold and gold miners experienced the beginning of a multi-day crash.
The reasons behind the crash are as myriad as they are mysterious. But what I encourage you to take away from it is this …
If investors are so uncertain about something they hold that they’re willing to unload it in a hurry, I’m not going to complain about it.
Especially when smart bargain-hunters like you know how to spot panic-selling as a great opportunity to buy!
‘This Deal Was Simply Too Good to Pass Up!’
This week’s plunge in gold may have surprised a lot of investors. But in-house resource expert Sean Brodrick was ready for it.
In fact, he used it to make his first gold recommendation in months … because this market handed him a deal he said was "simply too good to pass up"!
He’s already sent this new recommendation to members of his Junior Resource Millionaire service … and by now many of them have already positioned themselves to profit when gold makes its next move.
There’s still time for you to get in on all of Sean’s newest recommendations — click here to make sure you’re on board!
Are the Gold Sellers Giving Up?
Gold bullion dropped below $1,500 per troy ounce on Friday, as whispers grew louder that Cyprus planned to fund part of its bailout through the sale of about 400 million euros’ worth of gold.
Though the rumor remains unconfirmed, there were plenty of other theories out there about why the yellow metal continued its slump into the early part of this week.
One reason could be that both the U.S. and China raised margins for precious-metals futures contracts. Others speculate that the big banks or even the governments around the globe had a hand in prices going lower so they could stock up on the cheap.
No matter what did (or didn’t) happen, just as quickly as prices went down, they’ve started to stabilize.
After dipping into the mid-$1,300 range, gold regained ground during the past couple of trading days, moving up with the broader markets Tuesday and continuing its ascent as the U.S. markets tumbled yesterday.
Is the selling finally over?
Maybe not, but the drop in gold prices is bringing out the bargain-hunters, at least in the areas of the world where people know that gold has real value.
- Australia’s Perth Mint, which refines most of the nation’s bullion, said gold sales soared after prices plunged.
- Singapore’s GoldSilver Central, which enables customers to buy and sell bullion, says it’s having trouble getting its hands on new supply to meet a surge in demand.
- And at the largest bullion market in India, Zaveri Bazaar, a jeweler recently told the press that gold-buying has stepped up in earnest “because now people are getting jewelry 15% cheaper than before.”
And that’s just in Asia!
Here in the U.S. we seem to be in a deflationary period. Oddly enough, gold can do well in deflation — and not as well as you might think in inflation — because it’s real money.
But does that mean it’s time for you to start adding to your gold holdings?
You know I’m bullish on gold. And if you’re looking for even-more reasons to be bullish on the popular yellow metal as well, in addition to the reasons I outlined for you last week, I’d like to add to that list …
3 More Reasons to Like Gold
Straight Lines Don’t Last. Just as gold couldn’t go up forever — though 12 years of gains in a row was a pretty good record — sellers will get exhausted.
Sentiment Will Change. You and I can see that gold is oversold. Most investors don’t have a clue, but that will change in coming days. Then we could see gold rally to test overhead resistance at $1,455, $1,565 and perhaps $1,628.
The Bargain-Hunting is Picking Up Pace. As we discussed earlier, consumers in Asia are already swooping in to buy gold at two-year lows. The World Gold Council confirms that sales in India and China are heating up big-time. Walk-ins at gold shops have reportedly doubled. And with India’s wedding season approaching — jewelers will likely be looking to stock up ahead of time. Considering that India’s January-to-March imports were down nearly 24% year-over-year, there’s a lot to make up for.
Speaking of bargain-hunting, I can confirm that it’s taking place in junior mining stocks, too. In fact, on Tuesday I gave my Junior Resource Millionaire subscribers a fresh new gold trade, and another stock to get ready to buy at any moment.
By now they’ve already gotten positioned to profit when gold makes its next move. But it’s not too late for you to get in on these and other new precious metals and other resource recommendations coming down the pipeline.
Simply click here to watch my newest presentation on gold, and follow the instructions at the end to make sure you’re on board for what I’m anticipating will be a shopping spree you’ll want to take advantage of!
All the best,