I am very comfortable with being ahead of the curve. I am actually quite used to going out on a limb and calling market movements before they occur, before it is deemed acceptable, or considered the "norm". This is what contrarian investors do, and I am proud to wear this title.
Anyone else who falls into this minority of investors will know exactly what I am talking about, we are comfortable with not having everyone agree with our every assessment and quite uncomfortable when everyone in the room does.
This is exactly how I was recently able to call the historic crashes we just witnessed within the cryptocurrency markets, weeks before they occurred, and it is exactly why I was able to call its historic rise over six years ago.
In addition to this, my contrarian intuition has served me well throughout the years, allowing me to call silvers massive move higher in its last parabolic bull run, as well as its inevitable top, missing the mark by only $2.00.
Recently, I have taken another contrarian position, one in which I believe is going to fully play out over the next two years, the resurgence of the precious metals markets and commodities as a whole.
This industry has been beaten, battered and bruised, investors in the space have almost entirely capitulated and have grown even more cynical then they already were, which is saying a lot, considering your average precious metals bug (myself included).
We have been treading water for years, just barely keeping our heads above as the cartels beat us back time and time again, suppressing both the price of gold and silver each and every time they look like they are going to surge higher. No more.
This year is going to mark a turnaround and a resumption of the bull market in precious metals, funds flowing out of the cryptocurrency markets are already being reported to be flowing into the precious metals space, and other key assets, a predication that I also made in the latter part of last year, before the crash occurred and one that is now playing out.
We are not going to see 100% gains this year, so don't get too excited yet. However, 10-15% gains within the physical markets are well within reason, followed by a much stronger performance throughout 2019 as this bull market gains steam.
This is going to lead to massive gains in the mining sector, which have also suffered horribly throughout this down trend. I believe that this is where the most profits will be made, in the short to medium term, with many companies making strong gains through 2018 and 2019.
Still, these are just the humble predication of a lonely contrarian investor, and fortunately, I'm quite happy if no one agrees. In the meantime, I'll keep stacking, enjoying these artificially suppressed prices.
- As Originally Seen on the Sprott Money Blog
