What “To The Moon” Will Look Like

This may sound sensationalistic, but I think the odds are very high that, on average, gold producers will sell in the $200 range before this bull market is over. With most of them trading between $20 and $40, the returns could be tremendous. And while the typical junior won’t reach the same price level, their percentage returns will be much greater and potentially life-changing, as you’re about to see.The timing of this article may seem incongruous, given the recent weak performance of gold and gold stocks. But that was the identical situation in each of the past manias: both the metal and the equities didn’t excel until the frenzy kicked in. The following documentation is actually a fresh reminder of why we think you should hold on to your positions – or start accumulating them, if you haven’t already.So, are my projections based on some fantastical gold price, or a complex formula for gold stock valuations? Nope. I base my projections simply on what gold stocks have done in the past. And to the surprise of many investors, it’s a performance they’ve logged several times, making the following prices very believable if you’re bullish on gold.It comes with a warning, though:Caution: the following tables may cause excitement, drooling, or the temptation to go all in. Read and invest at your own risk.You’ve undoubtedly read about gold’s spectacular climb in 1979-’80. And you’ve likely heard how well gold stocks performed in general. But most researchers haven’t identified exact returns from specific companies during this era.The reason? Digging up hard data prior to the mid 1980s, especially for the junior explorers, is difficult because it hasn’t been computerized. So we sent a couple of researchers to the library to view the Wall Street Journal on microfiche. We also relied on Scott Hunter of Haywood Securities; Larry Page, president of the Manex Resource Group; and the dusty archives at the Northern Miner. This means our tables, while accurate, are not necessarily comprehensive.

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via What “To The Moon” Will Look Like.

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