With the gold and silver mining shares on a tear as the XAU and HUI Indexes hit new highs, today a top advisor to the most prominent sovereign wealth funds, hedge funds, and institutional funds in the world, told King World News that gold and silver are headed into the stratosphere along with the mining shares.
But first, take a look at the extraordinary calls that Michael Belkin made in previous KWN interviews…
“Gold stocks will turn into the new ‘momentum class.’ It sounds almost hilarious to say that now because gold stocks are so depressed and they are so far from being momentum names, except for the one I recommended that is up 1,000%. But when nothings else is working for institutional investors, they will begin to flock into the thing that is working, and I think that will be gold and gold stocks.” — Michael Belkin, October 10, 2015
“In the gold share sector we are seeing the beginning of a major, extended move higher.”
— Michael Belkin, January 9, 2016
“Money is going to begin to flow into silver and silver is going to begin to outperform gold. And there just aren’t that many (high quality) plays on silver, and I think the market capitalization of these silver stocks (I’ve just recommended) could swell enormously.”
— Michael Belkin, March 22, 2016
“Imagine what will happen when the Fed reverses course and cuts rates and do QE. Can you imagine what’s going to happen to gold (and silver) and the gold stocks? The XAU is already up 100 percent, but that move will light a fire underneath the bull market that has already started. These things (gold, silver, and the shares) are going to go much, much higher than anyone can currently imagine.” — Michael Belkin, June 8, 2016
All of that and more has unfolded, but today…
Eric King: “Michael, you advise the biggest money on the planet, but most people (who you don’t advise) are underperforming and it’s their worst underperformance ever.”
Michael Belkin: “It’s a torture chamber. I had somebody in my office a week ago and I told him:
“Look, gold stocks are up 138 percent, do you want to buy them now?”
And he said:
“Yes, because the share prices have now risen to a level where it’s OK
within my mandate to buy these things!”
Institutions Missed The Rally But Are Now Buying Aggressively
So believe it or not, these guys (fund managers and most institutional money) totally missed the rally in the mining stocks. So now, ironically, the big institutional investors, after these stocks are up 138 percent and some of them are up 300, 400, 500 percent, now they can actually buy them because their mandate only allows them to buy stocks with large capitalizations that have moved up.
You Haven’t Seen Anything Yet
So that is my scenario. I think the next wave up in the gold stock market will be led by institutional investors buying into the rally that has already started. And some people are afraid. They say to me, ‘Gold stocks are up so much.’ But I really don’t think they have seen anything yet.
The XAU and the GDX have just broken above their 200-week averages, which is the line between a bear market and a bull market. So several weeks ago they broke above their 200-week moving averages and it has signaled an intermediate- and long-term uptrend. One of the things I have been saying to my clients is that the best is yet to come (in the mining sector). We are just in the early innings — this is just the first or second inning of a long-term bull market and you want to buy the dips.
The XAU is up 138 percent, but some of the stocks I’ve recommended are up 300, 400, 500 percent year-to-date. And as this bull market goes on there is a constant rotation going on in and out of…To continue listening to the absolutely jaw-dropping interview that has now been released with the man who advises the most prominent sovereign wealth funds, pension funds, hedge funds, and institutional funds in the world CLICK HERE OR ON THE IMAGE BELOW.
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