from Outsider Club:
That’s my advice to precious metals investors.
Circle the remnants of a fallen industry and pick the bones clean of profitable opportunities.
Precious metals are five years into a bear market. So investing in this space isn’t about chasing momentum. It’s about buying up bargains.
No doubt, 2016 is going to be a make-or-break year for many gold miners.
Those with strong assets and balance sheets are going prove their mettle, while the weaker among them die off.
Indeed, the next 6-12 months will see major resource capitulation: bankruptcies, mine closures, idled production, and investors throwing in the towel.
Tax loss selling could get ugly in many instances.
But again, that’s not a bad thing. It separates the wheat from the chaff.
The strong will survive. More than that, they’ll emerge from this downturn with higher margins, toned balance sheets, productive assets, and less competition than before.
This is the nature of the commodities market. And you can do quite well for yourself, if you know how to exploit it.
The Gold Cycle
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