Michael Berry: When Picking Mineral Stocks, It’s Management, Management, Management

by George S. Mack
The Gold Report
Michael Berry believes the declining dollar is the real driver behind the gains in gold and silver and that silver is undervalued relative to gold. In this interview with The Gold Report, Berry, co-founder of Discovery Investing and pioneer of the Discovery Investing Scoreboard, discusses the factors that are now driving valuation and highlights some micro-cap stocks that the market has ignored.
The Gold Report: When you look at the PHLX Gold/Silver Index (XAU) between mid-May and mid-July, there’s a perfectly beautiful double bottom. It looked like a big W. Since the beginning of October all commodities have broken down a bit, but that double bottom was so pronounced. Do you attach any significance to it?
Michael Berry: George, when we used to see a “W” pattern we would say “WOW” and when we identified a double top “M” we would say “Mother”! There is a dominant secular quality-of-life cycle in the world, a very long-term cycle, so in the short run, we’re going to have runs up and then declines. The Federal Reserve is going to continue to attempt to inflate and devalue the dollar value relative to other currencies and relative to gold and silver. And it is going to do it for the next three to five years, for however long it takes. Just take a look at Japan for a view of the future. My sense is that there’s a very firm bottom on both gold and silver that has been identified by the double bottom you are referring to.
Continue Reading at TheAuReport.com…