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GLD Will Surge Over The Next 6-12 Months


  • What's occurring now in the precious metals and mining shares isn't outside the norm.
  • I don't believe that GLD is going back down to 100, but it's difficult to say when this period of consolidation will be complete.
  • This is a second chance for all of those who missed out on the first run.

In 2015, I stated many times that the bottom in gold would be hit very soon and that the profits made off of those lows would be enormous. My focus was always on buying the precious metal stocks, as that was where the real gains would take place.

In early January 2016, I forecasted that the bottom was just a few weeks to a few months away in the gold and silver miners, and I was starting to load up.

Last year was one of the best years I have had in the market, right up there with the 2009-2010 gains when I bought a significant amount of tech stocks at the bear market lows (along with some precious metal shares as well). I believe that last year's profits in the gold and silver sector were just a taste of what's to come.

Many investors completely ignored the space from 2015 through much of the first half of 2016 - missing out on the absolute bargains and huge returns in the mining shares. However, I believe now those investors have a second chance, as gold, silver, and the miners are once again offering up very attractive entry points, and massive upside still remains. The only question is will these same investors repeat their mistakes again by shunning one of the cheapest sectors in the market?

Just A Normal Correction

The SPDR Gold Trust ETF (NYSEARCA:GLD) hit a low back in December 2015. It proceeded to gain ~30% over the next seven months - a clear sign that the vicious, 4.5-year bear market was over. However, since then, there has been a deep correction: GLD fell to 107 last December and has been struggling to get back to those summer highs.

(Source: StockCharts.com)

Of course, this is creating a significant amount of

This article was written by

SomaBull profile picture
Leader of The Gold Edge
In-depth coverage and analysis of gold and the gold mining sector

I’m a private investor with a strong track record of outperformance, and also currently work as a research consultant for high-net-worth clients who invest in the precious metals sector.

My focus was mostly on Tech/Internet when I started investing, but almost 20 years ago I became extremely interested in the gold and silver sector as I anticipated a major bull run.

I’ve been doing in-depth research on gold and silver miners since then. I'm familiar with their stories, their stock patterns, their highs and lows, their operations/projects, their successes and failures, their management teams and turnover at the top, and all other facets of these precious metal companies.

This sector is my singular focus as I expect a massive bull market will unfold. These mining stocks are the cheapest they have been in over a decade, some in fact, are near multi-decade lows as they are oversold and significantly undervalued. I expect strong appreciation in these mining stocks as the bull market in gold and silver recommences.

I believe in buying value, and not chasing the next hot stock. I use several basic investing principles, the main one being buying the balance sheet. I wait for opportunities to present themselves and then establish positions. I believe in doing your homework, and I have a very research intensive focus.

*Disclaimer* I am not a Certified Financial Advisor. My research and articles should not be interpreted as a recommendation to purchase, sell, or hold any security at any time. The accuracy, completeness, or timeliness of the information posted in my articles is not guaranteed. Do not rely on any statement that I make in my articles. All readers and subscribers should always conduct their own research and should consult a professional financial advisor when it comes to making investment decisions.

Analyst’s Disclosure: I am/we are long KGC. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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