Precious metals expert Michael Ballanger says we are actually back in a bona fide, brand-spanking-new, bull market in gold and the gold miners.
As I was busy last evening returning a myriad of emails regarding the near-term outlook for gold and silver, I was suddenly hit with the realization that we really are actually BACK in a bona fide, brand-spanking-new, bull market in gold and the gold miners.
After doing this for nearly four decades—riding these massive cyclical swings in the resource sector and nearly/totally losing my mind—I have developed an indicator that can best be described as an “ad hoc” indicator that is totally based upon my interpretation of human emotion and one that cannot be quantified. The reason is so difficult to quantify is that it is so totally subjective and completely devoid of any form of objective analysis and, sadly, 100% reliant upon my ability to correctly assess the levels of “fear” and “greed” that dominate the precious metals arena.
Back in the summer of 1987, I was at a local meeting of the “Small Business Luncheon Group” in a mid-sized Ontario city and in the pre-lunch cocktail session, I would stand by the bar and offer to answer questions from the attendees about stocks and bonds and gold. Over the past years, I had noticed that my popularity at these events carried an inverse relationship to the real estate market and was directly correlated to stock market tops and bottoms. I affectionately called this my “Cocktail Party Theory” and I have made notes every year since 1985 although I rarely attend these functions anymore, largely because everyone is 20 years younger than I am and doesn’t know the difference between a porphyry and a porpoise. (A porphyry is a type of mineral deposit.)
At this particular …read more