Another Buying Opportunity in Gold and Silver Equities?

Recent developments in gold and silver equities have shown the classic volatility this sector is famous for. Even though I believe we are in a bull market, you can still see very strong pullbacks that are challenging to navigate. This is a part of investing and trading in this sector, and while it can be nerve-wracking, you have to become accustomed to it and, to be successful, use this volatility to your advantage.

At Value Discovery Media, we try to focus on long-term trends and invest in undervalued companies that benefit from those trends. We’re not really interested in short-term trading, but sometimes the market gives you great opportunities to buy during pullbacks and achieve extremely high returns in a short period of time, where it’s prudent to take some profits. 

Right now feels like a sweet spot for gold and silver equities, with prices still elevated and the reasons for them being elevated seemingly structural rather than short-term in nature. Producers are making good money at these levels, but at the same time, multiple great companies are still dirt cheap and close to multi-year lows.

Is it time yet to go in and buy the dip, or is there more downside ahead? I see a lot of value on offer now and am nibbling at some stocks, but I have come to know that it’s important for the technical setup to be good before you buy. So, if we’re going into a prolonged slump before we resume higher, I would prefer scaling in slowly to lower my cost basis.

With this uncertain market, it’s a great time to host an event on technical analysis applied to mining stocks, and I’m really looking forward to the event next Monday, June 17, with Don Durrett and John Feneck. I’m eager to hear an update on their precious metals investing thesis and see how they leverage technical analysis to tackle the current pullback in gold and silver equities. One of the best things about this event is that they’re going to highlight five examples each where they analyze the technicals but I'm also really looking forward to the live Q&A session.

If you’re interested, you can register for the event here.

Thanks for reading and have a great weekend!

Update: Due to unforeseen circumstances, the event on Technical Analysis has been postponed until a later date. Please stay tuned by subscribing to our email list!

Disclaimer: This article is for informational purposes only and does not constitute investing advice. Please consult with a qualified financial advisor before making any investment decisions.