In this update...

Posts of the Week

Is Gold Becoming a Risk-off Asset?

Venerable Research Firm, BCA Research is Positive on Gold Stocks

Podcasts

Jordan Roy-Byrne Interviewed by GoldMoney & Frisby's Bulls & Bears

We interviewed Tiho Brkan of the Short Side of Long Blog

I provide some thoughts on my process for picking stocks as well as some general thoughts on my outlook for the year. Tiho comments on precious metals and the gold stocks. Tiho provides a chart and notes that the gold stocks relative to the S&P 500 are the most oversold they've been since the bull market began.

Premium Sample

Our first sample is a 6-page snippet from update #292. This is our analysis of head and shoulder patterns and what is required for a major H&SH topping pattern.  We provide several examples.

Click Here to Download

Late Wednesday we published TDG #294, an 11-page update focusing on the potential of cyclical bull markets and our 5-top picks as well as our other favored companies. We showed examples of how well leading growth oriented producers performed in past bull markets. These are the stocks that rise 5, 10 and 15-fold in a cyclical bull. These are the stocks you should try to find if you are investing in precious metals. At least that is what we believe.

Quoting from our premium update:

Now, here is something to cheer you up. In the three cyclical bulls, the HUI was up 7-fold, 3-fold and 4-fold. It is probably due for a cyclical bull run closer to 7-fold. Consider this. On p3 we show the price to sales ratio of the HUI. In the next few years that can rise from 3.0 to 6.5. Meanwhile, lets project a 50% rise in the Gold price (which is basically projecting a breakout past $1900 plus another 27%). Factor in a cumulative 20% rise in production from HUI companies and you get a 390% rise in the HUI or almost a 5-fold gain. In cyclical bulls, growth oriented producers can rise 10-fold. On pp 4-5 we provide examples of how growth oriented producers performed during cyclical bull markets. Find the leading GOPs and you will make huge profits.

The model portfolio has definitely taken a hit in recent weeks and has had a rough start to the year. Yet, we are over 50% in cash and will likely begin buying next week. The key is to find the companies which will recover the fastest and lead the next major breakout.

Secular bull markets in commodities do not end like this. They end with a bang and not a whimper. The average bull market in real terms lasts 17-18 years. The previous commodity bull market lasted 13 years, the shortest on record. The one before was 18 years. If you mark the 2011 high as the end of the bull market then the bull market was only 9 years long or 11 years if you count 1999 as the start. Do we really want to bet that this bull market is over?

The bottom line is markets will soon begin a transition but it will take months to evolve. Equities will peak and enter a mild cyclical bear as commodities enter the final phase of their bull market. 2013 will mark the transition while 2014-2017 could mark the bubble and blowoff phase. SELECT and I mean select gold and silver stocks will perform fantastically. 2013 just could be one of the final best buying opportunities. 

Click Here to Learn More & Subscribe

Wishing you good health and profits,

-Jordan

Disclaimer: Sponsor Companies are paid sponsor companies of TheDailyGold.com website and this free newsletter. Do not construe sponsorship with a recommendation. We are not a registered investment advisor and information and analysis provided is for informational and educational purposes only. This newsletter is intended for informational and educational purposes only and should not be considered investment advice. The author is not a registered investment advisor. You should consult with an investment advisor and due your own due diligence.