I’m presenting the forecast chart again, yet a third time that I am showing it to you. Why a third time?
Because I want you to be fully ready for a major gold rally that could start at any moment.
Ditto for silver. For platinum. For palladium.
You can see it clearly on that chart. The green line. It’s the cycle forecast. Notice how gold should rally into mid-December, then fall into the first of January, then explode higher in stair-step fashion heading into the middle of March.
If everything goes according to the forecast model, that rally into next March should be the first leg up in gold’s new bull market. Ditto for the other precious metals.
And ditto for mining shares. Yes, as badly beaten up as they have been, losing as much as 90 percent of their value, and in some cases, even more — since their highs …
Mining shares should soon bottom and follow the precious metals higher. But you definitely have to be very selective with mining shares these days. You might think that those companies that survived the devastation should then thrive as metal prices start to rally.
That’s logical. But that doesn’t mean it’s right. There are plenty of mining companies who won’t even benefit from rising precious metal prices. Some have hedged or sold forward their reserves. Others don’t have the gross profits to pay off debt as interest rates also start to rise.
And still others may think that any precious metals rally that comes their way may just be an opportunity to sell their production and reserves forward, thinking that the metals are just bouncing a tad, and that they remain in bear markets for years to come.
Other than for short-term speculation, I’m not even sure some of the mining ETFs will help you. To make money in mining shares over the next several years, you’re going to have to be extremely selective purchasing mining companies. Period.
What about other precious metal-related investments? Should you buy numismatic coins, rare coins, bars and ingots? Which offer the best deal, the best upside?
Should you buy physically-backed gold and silver ETFs? What about storage for physical gold and silver? Store it at home? In the backyard? At your bank? In the U.S.? Or overseas?
There are a few general things I’d like to give you a heads up on right now.
If my forecast comes to pass, as I’m sure it will …
FIRST, most of your colleagues will tell you you’re nuts to invest in precious metals now. Don’t let that bother you. Instead, take it as a bullish sign. At important lows in any market, the majority always thinks it’s nuts to buy that market, asset, or sector.
SECOND, same goes for your financial advisor or broker. They generally don’t like it when their customers buy precious metal investments.
Chief reasons: One, the investments are often held for years. And two: Relatedly, they don’t make as much in commissions or hidden fees as they do in stocks, bonds or other types of investments.
THIRD: Don’t wait for signs of inflation to buy or even to feel good about buying. Inflation will have very little to do with this next bull market in precious metals.
Instead, as I have pointed out several times in this column, rising precious metals prices this time around will have everything to do with collapsing sovereign debts, collapsing governments, and the rising tide of geo-political stress.
This article is brought to you courtesy of Larry Edelson.