It’s something most investors don’t understand. Most investors are looking for stocks beaten down so much, it seems they can only rise. They totally ignore the stocks that have done exceptionally good. But that’s wrong! Stocks that doubled tend to double again, stocks at their lowest level tend to stay there or fall even further.

The trend is your friend, yet nobody wants to be friends with these stocks. We see this again and again, especially with gold stocks. Gold stocks doubled from January till May and are now preparing for the second leg up, this means they can double again.

Just look at GDX. From $13 till $26 in just a couple of months. They consolidated and are now braking out again. So why aren’t investors friends with these gold mining shares? Why can’t we hear a positive sound about this sector?

This answer is easy: most investor are still skeptical about gold. They still think gold will fall. They forget gold stocks didn’t nudge when gold fell $100. Now gold is on the rise again and gold stocks are making the happy few rich.

So let’s take a closer look why investors detest gold

Most investors will say gold is an old diversification, it has no role in a modern portfolio. Gold doesn’t produce a cash flow, it’s just in a vault, collecting dust. Gold can also be volatile. During the April 2013 crash it lost 13% in just 2 days.

But in 2002 gold rose 24% while stocks crashed 22%, even in 2008 gold ended the year in the green. So gold can be a hedge against stock market turmoil, it’s also a hedge against inflation and a weaker currency.

Billionaires are rediscovering gold, especially gold mines. But here is the catch, they are putting money into major gold stocks. Junior gold stocks are lagging. Lots of junior gold stocks doubled year to date, but the party still has to get started.

It’s not difficult to see why. During the carnage gold mining shares became lean and mean. Lots of juniors barely survived. They were valued as if they all would disappear. But now, that scenario has sailed. Costs are reduced by 34%, debts are being paid off and margins are exploding as gold is on the rise.

So the good news is, you can catch up with junior gold stocks, there is plenty of room to run. Most juniors aren’t on the radars, but they will. Risk was big, but now the opportunity seems endlessly. Prices are breaking out, as we speak. Still, no word about it in the media. Go figure! The mass media is asleep, while investors in gold and silver equities are having a BIG party.