The score will take care of itself ~ Bill Walsh

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Post Win Strategy: What to Do with Your Gold & Silver Stocks (ticker: GLD, SLV)

If you followed along on my recommendation for GLD and SLV, you would have made a 11% and 50+%  unleveraged killing in 3 months. You’re now probably wondering about your next moves. If you didn’t get a chance to get in, you’re probably wondering if it’s too late. You can watch my video about it or you can read below, because we’re going to talk about exactly that. 

 

 

Before we dive in on my recommendation, let me refresh you 5 reasons why I recommended this investment in the first place so you understand how I got to the end result and build some credibility that I didn’t pull numbers out of my ass.

 

Historically speaking when a crisis happens, money is pulled out all over the place. This causes the entire market to crash. As people lose jobs for WHATEVER the reason may be (end of the bubble, start of the recession, global health crisis), it will have a trickle effect that will affect businesses everywhere. This in turn will lead to businesses that are not recession proof to suffer. For example, retail, car industry, basically consumer driven non-essential type of businesses. When this happens, investors stop investing in those stocks and will look to put their money else where that is save, because small return is better than no return. This is in turn drives up the price of natural resources gold, silver, amongst other things. You can see this in the charts every time a recession hit the fan.

 

Being that I think we are in a bubble, because our world economy is being severely propped up by government input right now, this is reason #1 for my recommendation. 2nd reason is that the US government isn’t just propping up the economy by infusing money into the economy, they are printing money to do it. That’s like me trying to buy a pair of shoes from you for 50 bucks, I have no money so I ask my rich uncle to print me some money to buy with it. At a small scale, no one will notice, but at a large scale of trillions of dollars, eventually you’re gonna be like F this, pay me more because the the market will eventually notice that 50 dollars is worth less, now that a shit ton of new dollars have been printed. The natural consequence of that is if you’re investing in natural resources, natural resources will cost more and therefore your investment will be worth more. Hence, again gold and silver.

And the third reason is that gold and silver is finite. Until we figure out how to mine the moon, we’re depleting that shit, even with all the recyling we’re doing so because of all the industrial and pneumatic value in gold and silver, the price of silver will continue to go up along with the first 2 reasons. 

 

4th reason, people are hoarding this shit. Whether I’m right or not about all of those previous points, if you hoard shit enough, the price will go up. How do I know this? Go to jmbullion.com and apmex.com two top sellers of gold bricks. You can see they are regularly out of stock. Before the COVID crisis this was 100% not the cases

 

The last reason is that Samsung is doing R&D with silver compound batteries. If that shit works out, WOOOWEEEE. our phones will have the lifespan of candy bars, cars will drive forever, fuel cell tech will eat shit, there would be so many implications to this, so I’m speculating on that one.

 

 

Ok now you know why I’m invested heavily on it, what is my recommendation for your next move. Qualitatively, I still believe it makes sense to hold. Primarily because the feds are still printing money. And just to be clear, federal relief needs to happen so they’re in a tough situation and just have to do it to help the citizens. I’m just pointing out that there’s a long term consequence here.

 

Now quantitatively, the last time the recession hit the gold stock tripled in price when horizontal for a year then dipped after. I think expecting 3X is like wishing for santa clause on Halloween, so I’m going to add a pound of error here and say 2 to 2.5x is my goal. That to me is a 250 to 300 price target. I def think there is still ways up because the news haven’t FULLY picked up on gold being growing insanely yet and when it does happen that’s when I’m expecting all the robinhoods to pounce and you’re going to get your sexy ass pop.

 

The 11ish trading strategy is you always have a number in mind for when to exit. This is important because if you get to that number sooner than expected then either something amazing happened in the market that has changed projections OR everybody else just discovered your little jems and now the stock is overvalued based on your evaluation criteria. If you don’t have a number in mind, you wouldn’t know, and if you don’t know you’re more likely to hold on a hype and then get majorly screwed.

 

What is YOUR price target and why? I’d love to hear your thoughts

 

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