Gold Stocks Set to Dramatically Outperform the Dollar, the Dow, and Gold Itself

Pinnacle Digest writes: Gold stocks are making a generational bottom…so says Stewart Thomson who is highly regarded by the Pinnacle Team for his ability to time the gold market.

In this article Stewart Thomson explains why he believes the Dow could drop in value and reiterates his belief that the low 11,000’s provide a nice entry point. With that stated, Thomson believes a falling Dow would be bad news for bullion and many stocks, but he believes it won’t phase gold stocks. Thomson reiterates his position that the dollar bugs have really sucked the life out of the gold bullion trade, but makes his point very clear that gold stocks, and more specifically, junior gold stocks, have bottomed out.

 As Thomson stated in his report last week, bullion has been the flight to safety asset for gold bugs. This has had severe repercussions on gold stocks; so much so that they are trading at a “generational bottom” in his words. And this severe crash in gold stocks has set investors up for an opportunity to buy into such equities for ridiculously cheap valuations. Thomson believes gold stocks will greatly outperform bullion for a significant time period. He is most bullish towards junior gold stocks.

“Gold could break the lows near $1525, and fall towards $1432 or $1266. While that happened, I still think gold stocks could stun investors by soaring.”

Click here to read his entire article.