Larry Edelson: Oodles of readers want my head for turning temporarily bearish on gold again. They say I flip-flop too much.
They say I don’t know whether I’m coming or going. They think I’ve always been dead wrong on gold.
But the bottom line is this: I have nailed every major turn in the price of gold and other precious metals, including …
The high at $850 in January 1980 and gold’s subsequent 20-year bear market.
The precise bottom in September 2000 at $260 an ounce, just five dollars above the final bear market low at $255.
The initial blast off that carried gold to over $1,000 an ounce by 2008.
The 2008/2009 meltdown in all markets, when I told my subscribers to increase their allocation to gold from 15 percent to 25 percent, when gold fell below $700 …
And they enjoyed gold’s next huge move up, which saw it explode higher all the way to $1,921 in September 2011.
And if that’s not good enough …
On Sept. 18, 2011, I screamed from the rooftops that gold’s bull market was temporarily over, and that a three-year bear market would set in.
|Don’t fret. Don’t worry. The long-term precious metals bull market isnot in danger of going way.|
I told my readers to get out of gold, or hedge. Two weeks later, I told my readers to exit all mining shares.
Fact is, I don’t know a single soul that has a better track record than I do in the precious metals and miners.
Yes, I did believe gold bottomed late last year at $1,180 an ounce. Yes, I did tell my followers to start getting their toes wet this past June. And I did believe that miners too had bottomed.
I was wrong. Though gold and mining shares did rally a tad, they essentially went nowhere. If you had acted on my forecasts and more importantly, traded lightly, you shouldn’t have suffered any major losses, and indeed, may have even made a little money.
Now, here are some more facts:
Fact #1: As I said last week, regardless of what the near term may bring, the long-term outlook for gold has not changed.
It’s still subject to powerfully bullish forces that will ultimately drive it to $5,000 an ounce and beyond — a massive flight to quality from investors around the world, due to the madness of bankrupt governments, rising geo-political conflict and more.
Fact #2: The extension of the bear market in the precious metals also opens up profit opportunities – to profit as the precious metals and mining shares decline. More on this in a minute.
Fact #3: As the precious metals and mining shares decline into early next year to their final lows, you will have even more opportunities to profit …
As the die-hard bulls get washed out of the markets, allowing you to scoop up the many bargains that will become available.
So how should you handle a further decline in precious metals and mining shares?
First, don’t expect them to completely crash. It’s far more likely that you will soon see a rather large bounce, one that could take gold, for example, back up to $1,258.50, $1,280 and as high as $1,300 …