Today one of the rising stars in the business told King World News that investors need to ignore the volatility in the gold and silver markets, step back a look at the big picture.
December 2 (King World News) – Eric King: “We are seeing this additional downside pressure in gold and silver. Is this a time where you simply step back and look at the big picture?”
Otavio Costa at Crescat Capital: “Absolutely. If there was ever a time to be taking on risk to go into a deep value opportunity in the precious metals market I think that time is today. I believe precious metals as part of the monetary metals and alternatives of the monetary system will be the assets that will benefit ultimately from this macro environment.
And I think the miners will be the next growth stocks of the market for the next 10 years or so. I think they have a lot of fundamental value as far as free cash flow growth and margins.
We have the largest percentage of mining companies operating profitably in history. We also see the net debt issuance and equity issuance at or near the lowest levels in history.
The debt profiles are excellent and all of this shows that we are in the early stages of the merger and acquisition. The M&A cycle is just starting in our opinion.
Companies had been shy about making deals. But now, given the fact that things are so depressed in terms of value, holding high-quality mining and exploration companies is almost like holding onto winning lottery tickets. So we like to hold a large percentage of our net worth in the gold and silver mining space…
VERY BIG DEAL!
This exploration company just made one of the biggest
acquisitions of 2021 that stunned investors!
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And, Eric, I would also like to point out that it’s absolutely normal to see gold struggling after hitting new highs. We saw this in 1978 and in 2008, right before the global financial crisis.
And when everyone was bearish in 2008, similar to today, the gold market went bid again and continued to rally for another 2-3 years. Recently we saw the gold market hit a new high in August of 2020 and then it immediately started to struggle. This has led to a 15% or so pullback off the highs. And this is quite normal. We’ve seen those pullbacks before. Gold was signaling inflation was coming. We saw a big rise in the price of gold from August of2018 to August of 2020, about an 80% increase. From there, as I said, all we are seeing is a pullback. I remain very bullish and I think it’s time to be accumulating these high-quality assets rather than losing faith.”
***ALSO JUST RELEASED: Omicron Market Reaction, Expect A Lot More Volatility And “Transitory” Inflation Was Always Bullish*t CLICK HERE.
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***ALSO JUST RELEASED: Look At These Stunning Charts, Plus Gold And Mining Stocks CLICK HERE.
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***To listen to E.B. Tucker discuss the available physical gold disappearing and why he expects a big turnaround in the gold market CLICK HERE OR ON THE IMAGE BELOW.
***To listen to Alasdair Macleod discuss the available physical gold disappearing CLICK HERE OR ON THE IMAGE BELOW.
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