Precious Metals
These 15 Gold and Silver Juniors Have Parabolic Pricing Potential
If you are a believer in much higher gold prices like many analysts are (see here) then this article should be of considerable interest because the price…
If you are a believer in much higher gold prices like many analysts are (see here) then this article should be of considerable interest because the price of gold has a huge impact on the profitability of a gold/silver miner and the value of a such a company. Indeed, the setup for a major rally – dare I say, a parabolic move – in gold miner stocks is right in front of us so it’s time to start searching for undervalued stocks with large reserves in the ground – and this article does just that.
An original article by Lorimer Wilson, Managing Editor of munKNEE.com (Your KEY To Making Money!)
What Is A Parabolic Move?
A stock goes parabolic when panic buying sets in and prices are driven vertical with an almost complete absence of sellers and this creates a vacuum of buying with traders rushing into a certain stock regardless of price, in fear of being left behind. While parabolic stocks are attractive to buy because they offer the possibility of making a lot of money in a relatively short period of time, it is dangerous to overstay your welcome as it often marks the end of a move with prices not returning to the ultimate highs again for a long time (see the example below). The key in trading such a strong trend is capturing as much of the move up as possible early in the move on the original breakout in price action from a previous range.
The price action pattern that creates the parabolic curve looks like a staircase and it can last for weeks and sometimes months.
Examples of Previous Parabolic Surges
Junior Miners Returns in 1979-1980
Gold increased by 276% from the beginning of 1979 to a peak of $850/ozt. on January 21st, 1980, and gold stocks, in general, went up dramatically at that time (see below) with many of them becoming 10-baggers (1,000% gains and more).
Source
Source
- Step 1 in October, 2020: +42%
- Step 2 in November, 2020: +12%
- Step 3 in December/early January, 2021: +21%
- Step 4 from mid-January to the mid-February peak in February, 2021: +24%
- Bear Creek (BCEKF);
- Cartier Resources (ECRFF);
- Lahontan Gold (LGCXF);
- Nighthawk Gold (NHK);
- Equity Metals (EQMEF);
- Gold Mountain Mining (GMTNF);
- Revival Gold (RVLGF);
- Hummingbird Resources (HUMRF);
- Aftermath Silver (AAGFF);
- Silver Z (AGXPF);
- Integra Resources (ITRG);
- Paramount Gold Nevada (PZG);
- White Rock Minerals (WRMCF);
- Troilus Gold (CHXMF); and
- FreeGold Ventures (FGOVF)
Conclusion
The surge in gold and silver stocks gives every indication that the parabolic move in gold and silver juniors has started. As the U.S. dollar rolls over on inflationary debasement more and more speculators will flood back into gold futures which will catapult physical gold and silver higher and that will motivate investors to chase the precious metals’ upside momentum which will accelerate the parabolic move further and faster. With that, the gold and silver stocks will rocket higher in a massive up-leg perhaps even surpassing the massive up-legs experienced back in 1979/80 and the mid-1990s.
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