The Next Leg Up for Gold
by Nick Hodge
Publisher’s Note: We record our Bizarro World podcast every Friday and publish it every Monday for you. Like we happened (lucky!) to mention GameStop back when it was near $40, we also discussed the newfound infatuation with silver stocks in the most recent episode.
You should listen to the entire podcast by clicking here, but I’ve also included a particularly insightful snippet that my co-editor, Gerardo Del Real, had to say, below.
Enjoy.
Nick Hodge
Editor, Daily Profit Cycle
Click to play.
Here’s some of what what Gerardo had to say in this week’s episode of Bizarro World:
I had a subscriber that wrote in that's been with me since 2016, and he subscribed to the new service and he had a great question. He said:
"In 2016, you launched your first paid service. At that point, you said it was a great time to get in. Here we are in 2021, and now you're telling us again that it's a great time to add to your position."
My reply without being too long in the tooth here was:
"In 2016, that was actually the bottom and gold and yes, the equities lagged, but most of the money I made in 2020 is from positions that I averaged down on from 2016, all the way through the end of 2019. In 2020, those paid off beautifully."
I had three full years to write checks and you know, Nick, because you wrote checks right alongside me on a lot of these deals at just ridiculous prices. If these companies weren't going out of business, it was a no brainer.
So what's happened now in 2021? Where are we now? Do I think this is another great opportunity?
Everyone's bored with gold. Nobody's grabbing popcorn and Cholula to look at the gold price right now.
Nobody's really excited about a lot of even the better names in the precious metals or the resource space.
The difference between 2016 and 2021 is it's not going to take another three years for that turnaround to happen.
A lot of these stocks have pulled back 40%, 50%, 60% from their August highs when gold broke new all-time highs.
That is an absolute gift.
It's not going to take three years to come out of this consolidation. It's likely to take another month to month-and-a-half.
When it does, it will turn quickly because of what you mentioned with some of the bigger stocks, the blue chip stocks.
The baseline is so low. They're coming from such a depressed level that making up 50% and 60% — you can do that in a day on some good results.
You're going to have the trend being your friend.
Gold will see new all time highs.
Copper will continue higher.
Silver — I don't care if the Redditors get involved or not — it's going higher.
It won't go straight up.
It never does.
But be absolutely clear: this consolidation is the second-best opportunity you've had since that initial opportunity back in 2016…
Where you should have been absolutely accumulating the best names and even some of the speculative ones.
—Gerardo Del Real, Co-Editor
Nick Hodge is the co-owner and publisher of Daily Profit Cycle and Resource Stock Digest. He's also the founder of Hodge Family Office, the umbrella organization for his three premium services: Hodge Family Office, Family Office Advantage, and Foundational Profits. He specializes in private placements and speculations in early stage ventures, and has raised tens of millions of dollars of investment capital for resource, energy, cannabis, and medical technology companies. Co-author of two best-selling investment books, including Energy Investing for Dummies, his insights have been shared on news programs and in magazines and newspapers around the world.
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