|Jeb Handwerger reports that gold stocks have been trading at huge discounts for years, but even rock-bottom prices could not entice takeover bids until the market hit bottom. The bottom is now here, says Jeb Handwerger, founder of GoldStockTrades.com, and M and As are off to a roaring start this year. Handwerger predicts a new record gold price within 18 months, and presents a host of gold and other metal equities poised to take off in 2015.|
He says that we are seeing a big increase in mergers and acquisitions. In November, Osisko Gold Royalties Ltd. bought Virginia Mines Inc. In December, Coeur Mining Inc. bought Paramount Gold and Silver Corp. In January, Goldcorp Inc. bought Probe Mines Ltd. for $440 million. And in uranium, Uranerz Energy Corp. and Energy Fuels Inc. merged. All this tells Handwerger that there has been been a sentiment change.
With the oil-price collapse, it hurts the banks, which are sitting on bad loans possibly larger than what they had during the 2007 - 2008 credit crisis. And the collapse of the fracking sector means the loss of most of the only high-paying U.S. jobs created since 2008, not just the drilling jobs, but also the ancillary jobs servicing that industry, e.g., geologists, geophysicists, landmen, geochemists, and associated labs. Handwerger suggests that the unemployment picture is much worse than industry realizes, except for upper management.
He sees gold hitting new highs against the U.S. dollar above 1,900 dollars per oz within 12 - 18 months. Investors have been moving out of world currencies into the U.S. dollar, but eventually they will diversify into real assets and real money, and also into the miners and the junior miners. He suggests that we are in the early stages of a bull market in gold equities, which could last anywhere from five to seven years. He further suggests that the gold price could possibly double to 2,600 dollars per oz.