Gold and Silver Stocks – How High Can They Go?

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April 13, 2016
Dudley Pierce Baker
http://www.CommonStockWarrants.com

 

 

In December 2003 Edward Gofsky wrote a great article titled,

“The 21st Century Gold Rush:
How High Can Gold and Silver Stocks Go?
Higher Than You Might Think!!

Being a bull on the precious metals I thought then what a great article. I have been in touch with Edward and he has given me permission to use his article.

What he did was visit the local library looking at old newspapers from the 1970’s for the price of gold and silver stocks and then comparing them to their ultimate peak in share price in 1980. Now it is probably a surprise to no one that gold and silver stocks were on fire as gold and silver peaked in January 1980 but some specific examples that Edward shares with us are just awesome and mind blowing, begging the question can ‘they’ do it again? But to put it in Edwards’s words:

“In the last few months I have started out on a unique quest…to go back in time to the 1970’s and to see what happened to gold and silver stocks when gold hit $500 then $600 then $700 all they way to the $850+ price and $50 silver…”

“…I started my research by going to my local library to look at old newspapers from the 1970’s, and wow did I find some amazing things!! My library had the financial post newspapers on microfilm all the way back to 1972 the very beginning of the last gold and silver bull market. I quickly went to work spending hours poring over the old papers looking for articles and stories on gold and silver to see if there were any similarities between now and the 1970’s…”

“…There were a few articles about gold from 1972 to 1975 but the real big stories didn’t really get published until around 1978-79 and especially in January of 1980 the final blow off top in both gold and silver. What I really wanted to uncover from the old financial papers were old stock tables so I could see how high most gold and silver stocks got to in January of 1980 and from what level a few years earlier…”

“…What I found was absolutely shocking. In 1975 most or all of the gold and silver stocks were trading under $2 most were penny stocks under $0.50…”

Sound familiar? Today most of the junior mining shares are selling for pennies. Are we set up once again for a mania phase in resource shares?

Edward shares with us some examples of his findings, i.e., “Lion Mines – 1975 price $.07 / 1980 price $380 YES that’s right it’s not a misprint you could have bought 1000 shares of lion mines in 1975 for around $50 dollars at 7 cents per share and held on for 5 years riding the wild gold and silver bull until 1980 where you then sold those same shares for $380 each for a total profit of around $380,000. Not bad hey!!!!! This is only one of many more examples.”

Need some more examples of names you have probably never heard of and are no longer in existence?

Bankeno
1975 Price $1.25 / 1980 Price $430

Wharf Resources
1975 Price $.40 / 1980 Price $560

Steep Rock
1975 Price $.93 / 1980 Price $440

Mineral Resources
1975 Price $.60 / 1980 Price $415

Azure Resources
1975 Price $.05 / 1980 Price $109

“These are only a handful of gold and silver stocks that participated in what I consider one of the biggest financial opportunities in the history of human civilization. I don’t know of any other time except maybe the .com bubble where in only a 5 year time span you could have tuned so little into so much wealth…”

Imagine buying in 1975 a handful of gold and silver stocks for under a dollar and selling them in 5 years for $100, $200, or even $500 per share as gold fever ripped through Wall Street.

“This one decision in 1975 to buy just a handful of gold and silver stocks and sell them near the all time high’s of hundreds of dollars per share could have set you up financially for the rest of you life!!!!”

“…in January 1980 most gold and silver stocks were trading over $50 per share and lots were trading over $100 – $200 some even as high as $500 per share when only a few years earlier you could have bought the same stocks quietly for under 1 dollar…”

While these numbers are staggering, can you imagine if there had been call options, LEAPS or long-term stock warrants available on these mining shares?

Thru the years as I go back and re-visit Edward’s article, I get goose bumps to think we may see this manic one more time. Could we? If so, when?

Folks, it sure seems that we are there once again in history with a similar opportunity to make a killing with gold and silver stocks. This long bear market in the miners has hurt or destroyed many investors and professionals alike and it now time for history to repeat itself with only the names of the companies (the big winners) left in question over the next few years.

Personally I follow many different analysts and newsletter writers to assist me and my subscribers in navigating the overall trend of the markets and I must confess I am convinced that the next monster mania phase is coming and coming very soon.

I encourage each of you to read Edward Gofsky’s complete article on his website. You will never forget this read and your timing could never be better than today.

If you would like more information on my services please visit http://www.CommonStockWarrants.com.

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