There are two approaches you can take when it comes to gold and silver investing.
If you have nearly unlimited funds, you can take a shotgun approach, buying whole swaths of the market and cutting your losses while letting your winners ride. You’re basically speculating that some percentage of your holdings will do well enough to wipe out your losses, over time.
Hitting the target is easy with the shotgun… but you also see the bulk of your capital wasted, off target.
But again, if you have unlimited funds, you can afford to keep firing volleys, over and over again. Making bets on long shots – and when they hit, you make a bundle. When they don’t, you already have unlimited funds, so it doesn’t really matter anyway.
If you pay attention to the “touts” out there, you will always hear about their big wins from low probability bets that happen to pan out.
They don’t tend to mention their drawdowns or their overall track record.
And they also have no plan or very much to say at all when (as we’re seeing right now) metal prices dip and their stocks plummet. You only hear from them when everything is going perfectly and their heavily marketed moose pasture is defying gravity.
I will never do this kind of thing – and I don’t hide my track record either.
I publish investment research for the rest of us, who have limited funds and want to make them count. We need to pick our shots.
That’s why I take a disciplined approach to finding value. It’s the only responsible way to approach investing in general – but especially with the precious metals sector.
I find companies with a 99% chance of success – selling for deep discounts to their fair valuations.
If you’re patient and disciplined, you can line up your shot on these companies, accumulating when the market is down, taking profits when the market is up. That’s what I’ve been telling my readers through this bull market. It’s why I told people to take profits in both late December and just this past Monday.
It’s why I told people to load up back in October when the market had a minor correction.
If you’re interested in this kind of disciplined work, then you’re in the right place.
This correction we’re seeing now is a welcome reprieve for real investors who want to buy value, not hype.
This correction could go much further – but if you’ve been listening to my counsel, you’ll have plenty of dry powder ready to go when it turns back around.
Be patient! We’re going to do great.
Best,
Garrett Goggin, CFA, CMT
Lead Analyst and Founder, Golden Portfolio