VANCOUVER (Bullions Bull Canada) -- Part 1 of this three-part series identified the basic premise of successful investing ("buy low/sell high"), and then explained both empirically and as a study in psychology how/why most investors violate this Golden Rule with their investing.Readers were introduced to the Contrarian paradigm of investing. It was then shown how adopting this Contrarian perspective offered investors the only realistic possibility of buying low and selling high on a potentially consistent basis. The first part of this series then concluded by explaining what makes gold and silver mining companies a Contrarian's dream: a "low tide" sector currently bereft of any investment capital that despite its unloved status has a 12-year bull market behind it. The obvious inference here is if a sector at "low tide" can have a 12-year rising trend behind it, imagine where it will go when the tide finally comes in. Part II will illustrate how/why precious metals and precious metals miners have the most-favorable fundamentals of any sector going forward. There are far too many bullish fundamentals backing gold and silver to merely list them all. Readers interested in why the metals' price must rise have plenty of
At first glance, it may seem strange to use the words bargain and gold in the same sentence. However, the distinction lies not in the shiny yellow metal but rather in the observation that the mining firms operating in this space have not traded at such low valuations since the Lehman induced panic of the financial crisis during late 2008...The rally in the gold- and silver-mining companies that followed that bottom was the most spectacular of this entire bull market. There is one final, but crucial caveat here for investors: the major distinction between the large-cap miners and the junior miners producing in this sector. This will come in the conclusion of the series. Follow @bullionbulls This article was written by an independent contributor, separate from TheStreet's regular news coverage.