Rosen - Key Targets For Gold, Silver, Miners & Common Stocks
posted on
Nov 29, 2012 10:06AM
Ket Takeaway:
The rise in the gold and silver shares will be sensational. As stocks weaken and the price of gold moves into a steeper ascent, the profits to the gold miners will be massive. Profits will be absolutely enormous. Up to now, they have been relatively tame because the price of gold is at a level where they are not making that much money. But if you just look at the long-term gold and silver charts you will see how high they are headed.
From here on out, every single dollar that the price of gold or silver goes up, the vast majority of those gains will go straight to the profit side of the ledger. That’s going to be monstrous. Can you imagine gold at $3,000, $4,000, $5,000, $6,000 an ounce with the costs of mining only increasing modestly from current levels?
As I said, the gold and silver shares will see monstrous profits and the mining shares will soar just like they did in the 1970s bull market. It won’t matter what general stocks are doing, just like it didn’t matter that stocks were in a bear market from 1966 to 1982. We saw mining shares in a full blown mania when the gold and silver bull markets ended in 1980, and that was in the midst of the ’66 to ’82 bear market.
So KWN readers need to understand that the mining shares will divorce themselves from the action of the general stock market as the price of gold and silver soar, and money moves out of general stocks and bonds and into gold, silver and the shares.