Depressed Gold Miners Offer Once-in-a-Century Opportunity Says Veteran Analyst

• Junior gold mining stocks are dramatically oversold and undervalued currently, presenting potentially huge upside when sentiment shifts
• We may be in a 100-year opportunity for mining stocks, with valuations as depressed as the "nuclear '90s"
• Gold stocks historically perform well in recessions, rising in 5 of the last 8
• Multiple catalysts could drive gold to new all-time highs in 2023/2024 including recession, end of Fed rate hikes, crisis
• Gold remains the top asset to own long-term; silver will catch up eventually after typically lagging early gold moves

Gold Poised for New Highs Amid Catalysts

Gold has consolidated near all-time highs reached in 2020, but conditions appear ripe for fresh records in 2023/2024. According to veteran mining stock analyst Jeff Clark, we may stand at a once-in-a-century opportunity.

Clark argues junior gold miners are “dramatically oversold” currently, with some companies trading at just a fraction of the value of their assets. “This is the kind of thing I’m talking about - things are so oversold that when gold and silver resume an uptrend, I expect there to be big gains,” he said.

The last time mining stocks were this depressed was the “nuclear ‘90s” when gold went nowhere for years and miners struggled to profit. But an 11-year bull market started in 2001 as sentiment shifted. Clark suggests current pessimism has similarly created chances to buy quality miners at bargain levels ahead of the next upcycle.

Timing the TurnPicking the bottom requires watching for signs of changing sentiment and companies able to weather challenging markets.

"Unfortunately there are some stocks in people's portfolios, even in mine, that I have to ask myself, ‘Is this stock really going to participate?’ You might have to sell a stock that is down dramatically,” Clark explained.

He focuses on companies with adequate “cash and catalysts.” Cash ensures survival, while catalysts like active drilling demonstrate a company is progressing assets.

"If you don't see that, unfortunately that may be a stock that may not participate in the next run,” said Clark.

Patience Still NeededWaiting for confirmation of trend changes tests investor patience after a long bear market. Clark acknowledges people's fatigue but emphasizes mining shares cycle through oversold conditions before reversing strongly.

"Mining stocks oversell dramatically 50-60-70% and one example was 90%, but the next upcycle more than made up for it - the one that sold off 90%, the next uptrend was over a 500% gain," Clark noted. "So these things cycle, we’ve been in a down cycle, sentiment is bad but at some point this is going to reverse.”

Gold Ready to ShineGold stands poised to reach new highs in 2023/2024 amid several potential catalysts. An impending recession looks set to weigh on stocks but benefit gold.

"Gold has risen in all the past 8 recessions but 2 - it’s risen in 6 of 8 and the 2 that declined were single digits," said Clark.

Likewise, the probable end of the latest Federal Reserve rate hike cycle should remove headwinds. Interest rate cuts may even emerge. Further crisis events or black swans could spark safe haven inflows to gold.

"It could be anything and it could be something we're not prepared for," Clark commented. "Half of crises are black swans - things people were not expecting."

Upside for Silver Too

Silver tends to lag early gold gains initially but catch up later with bigger percentage moves. Clark points to silver's large supply deficits in 2020/2021 signaling investment demand overwhelms available metal for coin and bar production.

"Meanwhile you have new uses for silver coming out literally every month - industrial use is going to grow," Clark added. "Throw in some financial crisis, gold rising, silver is going to go."

Position for ProfitsWith gold mining stocks deeply oversold but fundamentals aligning, Clark suggests thoroughly reviewing portfolios. Investors may choose to sell lagging names unlikely to participate when the next bull run comes while adding exposure to high-quality miners with cash, catalysts and upside leverage.

"The opportunity is tremendous right now. When sentiment turns, you’ll see doubles and triples really quick and they’ll still be undervalued,” he concluded. The time to position is ahead of the crowd while valuations remain favorable.

Here is the investment thesis for Gold

• Gold mining stocks are dramatically undervalued and oversold, offering huge potential upside
• We appear to be at a generational opportunity given the extreme negative sentiment
• Multiple macro drivers benefitting gold are aligning (recession, rate cuts, crisis/black swans)
• Gold has proven resilient in past recessions while stocks decline
• Silver set to catch up with gold in coming years due to supply deficits
• Review mining stock portfolio, sell lagging names without catalysts
• Buy quality miners with cash, catalysts and leverage ahead of repricing

The gold sector may be at a once-in-a-century opportunity given extreme pessimism and oversold conditions. With recession looming and Fed policy set to reverse, gold looks poised to reach new highs in 2023/2024. Several macro drivers should stimulate safe-haven demand. Silver also looks attractive following recent supply deficits. Clark advises reviewing mining stock portfolios, selling laggards unlikely to participate, and buying quality names with upside leverage ahead of an expected trend reversal. Wise investors can position into oversold miners to potentially generate impressive returns in coming years.