Gold had a great start to the year, ending a 4-year correction and consolidation period. In the first six months of 2016, the price advanced from $1,045 to $1,377 for a gain of $332 or 32%. As usual, silver outperformed gold, rocketing from $13.62 to $21.23 in just over six months. This was good for a gain of $7.60 or 56%!
Mining stocks offered strong leverage to the gain in the underlying metals. While gold was up 8% in 2016 and silver was up 15%, the Market Vectors Gold Miners ETF (GDX) advanced by 52%. This is leverage of 6.5X the gain in gold and 3.5X the gain in silver.
While we advocate owning physical metals in your possession, this degree of leverage cannot be ignored. By occasionally taking profits in mining stocks and buying more physical gold and silver, investors will end up with a higher return and taller stock of bullion over time.
The Gold Stock Bull model portfolio generated a return of 69.8% in 2016! This far surpassed the gains of gold and silver and once again outpaced the gains of the mining stocks ETF. These gains were accomplished even with the recent pullback in prices, netting significant gains for subscribers.
We accomplished this return via careful selection of undervalued mining stocks and timing both entry and exit points to maximize returns. We focused on junior mining stocks with near term catalysts or recent news that the market did not appear to fully value.
While the portfolio was primarily gold and silver mining stocks, we also diversified into other sectors including platinum group metals, energy, agriculture, technology, cannabis stocks and occasional use of leveraged ETFs.
Our model portfolio has been outperforming the sector nearly every year since we started tracking the returns and we expect a huge year in 2017.
In addition to the real-time model portfolio, subscribers also receive email trade alerts whenever we are buying or selling, with justification for the trade. Also included is our monthly contrarian newsletter, which is 10 to 20 pages of macro views on the market, fundamental and technical analysis of the precious metals sector and updates on every position in our portfolio. It receives very high ratings at multiple websites that review investment newsletters and I invite you to try it out for 30 days risk free!
We also include a watch list with over 30 different stocks from various sectors that we believe have the opportunity to generate outsized gains. Every month there are multiple positions on the watch list that generate double-digit returns and we continually refine the list based on company-specific development and market sentiment.
If you would like to receive our research in 2017, get our top stock picks and track our trades, simply click here to become a Gold Stock Bull Premium Member or use the button below. It is less than $1 per day and if the subscription does not pay for itself many times over, you can simply cancel at anytime.
After a steep correction during the past few months, precious metals are oversold and offering investors an excellent buying opportunity. Many of our favorite junior mining stocks are offering deep discounts to their 2016 highs and we believe that 2017 will prove to be an even better year for gold and silver investors. Start profiting with us today!
The GSB model portfolio is not investment advice and was prepared without regard to any particular investor’s objectives, financial situation, and/or needs. It is an un-audited estimate of the returns that one would generate by following all of the trades in the portfolio during 2016. While we believe the information to be accurate, Gold Stock Bull does not warrant, represent or endorse the accuracy or reliability of any of the information, content, advertisements, or Third Party Sites Content. Past performance is no guarantee of future results.
