Upcoming Catalysts

As investors we try to get involved in good ideas before they become obvious to everybody. Along those lines, we also don’t want to be so early that our capital is tied up for long periods of time unless we are being rewarded for the investment, so we look not only at the idea, but what catalysts are in the near future to make the investment blossom.

Readers know I have been stalking the precious metals and miners bull market for a couple years now, and will continue to do so until the bull has run its course. After a crazy 2020, complete with a crash and phenomenal rebound, we find ourselves in the last quart of the year, and just a couple weeks in front of the presidential election. That is one catalyst sure to move the markets, though to be honest, I can’t say in which direction with any certainty but my hunch is it will be favorable to gold, silver and the companies that mine them.

More interesting to me is the recent news that Warren Buffett has finally admitted metals and miners can be a viable investment, if actions speak louder than words. He not only jettisoned may of his bank shares, he bought his first gold miner ever in the form of Barrick Gold (symbol GOLD). Also of note, I believe it was his only new position in the quarter ending in June. So there is our second catalyst for the short term, Buffett could very well announce new stakes in miners taken recently, or adding to his GOLD stock, and we should expect to hear on this by the middle of November. Let’s take a look at the weekly GOLD chart.

A quick glance shows us Buffett didn’t get some low ball price compared to an investor looking to get on board today, in fact we can own it not too far from his entry price. I am not buying GOLD, but point this out to illustrate the professionals aren’t always ten steps ahead of the rest of us, in fact we here RealProTrader have been in miners 18 months earlier and at much lower prices.

A third catalyst is the upcoming earnings reports for the mining companies. With rocketing free cash flow and higher metals prices the whole third quarter, we can expect glowing reports and things like increasing dividends, growing treasuries reducing the need to issue dilutive secondary offerings, etc. The earnings reports should be flowing fast and furious starting in about 2 to 3 weeks.

So we have some catalysts and while many are afraid of the election and what it might do to their portfolios, I think being on a massive bull trend such as the precious metals are experiencing, we can comfortably hold through any turbulence, and I wont be the least shocked if any surprises are on the upside!

I have lots of catching up to do on this site, updates on individual holdings I have including some big winners like MGMLF, Maple Gold Mines, which is already up 176% from my purchase price. I haven’t updated it because I haven’t made any changes, I still maintain a large position there and will not even consider selling any of my little junior miners and explorers for less than a triple, and some fo them I will be holding for closer to 10x my investment. I will explain in future posts, and as always you can check up on actual holdings and buy and sell prices in my statements posted elsewhere on this site. There is simply no way to gain credibility from a reader without putting it all out there for them to see for themselves.

Look for portfolio updates, and comments on specific holdings in new posts soon, I will also bring readers up to date on what I’m seeing in not only the mining bull and how its playing out, but some other groups that might be getting ready to offer up opportunities. For now, lets not lose focus on the one sure bull we have out there, precious metals, and while the general stock market is also in a bull, it could be argued the fundamentals are not supportive of the bull. Miners dont have that problem, technicals, fundamentals, everything is suggesting further upside, and even Warren Buffett now appears to agree. Staying heavily long, and looking to add into pullbacks.