The prolonged naked shorting of precious metals stocks has been immensely destructive to the sector and has left a battlefield littered with corpses, like the first day of the Battle of the Somme. The silver lining: Charts are showing a Head-and-Shoulders bottom.
Adrian Day is finding that the glass is definitely half full these days. In this interview, Day is downright exuberant on gold stocks and discusses royalty companies, prospect generators, majors and juniors that can mitigate risk.
The legendary chairman of Sprott Inc. says it's time for people to take matters into their own hands and that means pushing further and further into precious metals equities as well as physical gold and silver.
Gold is set to incur its 4th month of losses which has not been seen in nearly 13 years. While gold in dollar term is off 6% in May, the sharp fall in the euro means that gold has again risen in euro terms and is up 0.3% in euro terms in the month.
The chief editor and founder of The Dollar Vigilante and avowed anarchist, holds precious metals for safety and holds their equities for profits. He counsels geopolitical diversity and paying close attention to precious metal stocks.
The Shanghai Composite Index and Bombay Sensex are currently at one-year lows, indicating that investors are not feeling confident even in these relatively strong markets where GDP is growing. In this environment, gold is the "sole beneficiary."
Can the economy get any worse from here? Perhaps, yet the situation brings to mind an old aphorism, "The worse things were...the better they got." The time to buy stocks is when the lumpen are terrified, instead of euphoric.