|Gold Juniors breaking out to the upside on heavy volume|
I think that the three year bear market in gold and gold mining stocks is over. I do no think that they go straight up from here. Nevertheless every time we have had a long bear market in gold mining stocks the eventual follow on bull market results in gains in the hundreds if not thousands of percent. This is what a contrarian does, sells what everyone loves and buys what everyone hates. Everyone loves the broad stockmarket and bond market right now. Everyone hates gold and gold stocks. The gold stocks have just given a signal that the bear market is more than likely over. I like companies like the following:
I will add these stocks to the speculative portfolio. The gold juniors have had a 30% run over the last month or so. A pullback would provide an opportunity to establish new positions or add to existing positions.