"In my lifetime, the best time to have bought gold was 1971, at $35; it ran to over $800 by 1980. In 2001, gold was $250: in real terms even cheaper than in 1971. It ran to over $1900 in 2011."It's now at $1250. Not as cheap, in real terms, as in 1971 or 2001, but the world's financial and economic state is far more shaky."Gold is, once again, not just a prudent holding, but an excellent, high-potential, low-risk speculation. And gold mining stocks are about to create a whole new class of millionaires."
"The commercial traders are at their most bullish stance since the 2001 low, and they usually get proven right. It's a hugely bullish condition for gold, and I'm expecting a really large rebound."The moment we see a major gold producer announce that it's curtailing production or it's going out of business," McClellan continued, "that'll be the moment we mark the low in gold. I expect to have one of those announcements any minute. We're getting down to the production price of gold right now, and they won't continue producing gold at that level for very long."
- The current correction in gold stocks is the fourth longest since 1879. The decline of 66% ranks in the top 10 in history.
- In silver, only two corrections have lasted longer – the ones that ended in 1936 and 1983. Some technical analysts have pointed to positive chart formations, most notably the powerful "double bottom" that can portend a strong upward move. Based on intraday prices...
- Gold formed a double bottom last year, hitting $1180.64 on June 28 and $1182.60 on December 31, a convincing six-month span.
- Silver formed a higher low: $18.20 on June 28 vs. $18.72 on December 31, a bullish development.
- Gold stocks (XAU) formed a slightly lower low: $82.29 on June 26 vs. $79.73 December 19, 2103, a difference of 3.2%. However, as our friend Dominick Graziano, who successfully helped us earn doubles on three GLD puts last year, recently pointed out...
- The TSX Venture Index, where most junior mining stocks trade, has stayed above its June low. In fact, it recently soared above both the 50-day and 40-week moving averages for the first time since 2011.
"I'd say we're either at or extremely close to the bottom, and as an investor I'm not prepared to wait to see if the bottom's there because it's very hard to pick it. Because...if you're not taking advantage of it right now, you're going to miss a big part of the move. And when you look at the distance these stocks have to travel to get to their old highs, there's some wonderful numbers in terms of performance that I think we're going to see."