It looks like the time arrived for a different type of panic – buying gold stocks panic. As you know for the past four years, gold stocks did nothing but go down because of the awful bear market in gold. Well, now that gold appears to have figured out that the Fed is trapped, people are starting to panic and buy gold stocks.
Energold is a perfect example. When I did the interview with Fred Davidson, CEO of Energold, the stock was trading for C$0.32 per share. At that time, I loaded up on a lot of shares because it was trading for cash in the bank. Then, within a week, the stock price tripled. It was truly amazing watching investors fight with one another to get shares.
I suspect the same thing will start happening to all the gold stocks (the ones still in business) that I talked about over the last four years. It truly feels like a new gold bull market just started. If I am right about this, these gold stocks will be huge winners.
And if you are holding non-gold microcap stocks, you will be absolutely destroyed because the US is entering a recession and conventional stocks are priced for good times.