Editorials

Tom Petty said it well. The Waiting is the Hardest Part. Precious Metals remain in a correction, and we’ve been waiting and waiting for a better entry point.  After a spectacular four-month move, Gold and silver stocks still have not corrected enough in price and time.  But the good news is, they are starting to … Continue reading

I don’t mean to be a broken record, but the precious metals sector remains in a correction. Although the miners have outperformed Gold in recent days, their prognosis has not changed. Do you think a 180% rebound (in GDX) will only be corrected by 19% and in less than two months? Even after the initial … Continue reading

In our most recent article, penned two weeks ago, we noted that if Gold broke support at $1920/oz, then it could lead to a breakdown in the sector that could result in Gold testing the low $1800s and GDX and GDXJ testing lower levels like $37 and $51. Precious Metals have made a mini breakdown, … Continue reading

During bull markets, gold stocks (and the entire precious metals sector) tend to oscillate between correction and consolidation or impulsive advance. Commodities and precious metals are emotional markets, and this can make the medium to intermediate-term trends prominent and easier to define.  At present, the sector is in a period of correction and consolidation, and … Continue reading

The precious metals sector is correcting and consolidating as predicted, although some parts have been buoyant in recent days. Silver is one of those parts. The immediate question is whether a new leg higher starts or if recent strength is a bounce within a larger correction and consolidation. If you are fully invested or close … Continue reading

Precious Metals began a long anticipated correction a few weeks ago but it was somewhat interrupted by news of Warren Buffett buying a stake in Barrick Gold. The Buffett bounce has passed and the correction could reassert itself as the path of least resistance remains to the downside.  The weekly chart we posted a few … Continue reading

A few weeks ago, we wrote that a correction was imminent.  Wrong choice of words. However, we were just too early.  As we write this article, GDX and GDXJ have corrected 8% and 10%, respectively. More downside is needed to confirm a correction is underway, but I think that will happen soon enough. There are … Continue reading

What we wrote in May applies again. In a bull market, you buy and hold. Now is not the time to buy. A correction in precious metals is imminent and could be underway as you read this. The signals are overwhelming. Gold and silver miners started the week by gapping up on Monday and Tuesday. … Continue reading

Trying to assess the potential for a correction in precious metals (and in miners especially) is quite tricky, given the current context. Last week we argued that markets often make powerful and sustained upside advances following significant breakouts. In this context, an overbought condition can become very overbought and persist for a while, during a … Continue reading

Precious Metals have not broken out. Not yet. Gold closed the week at $1790 and Silver at $18.32. They have yet to breach critical resistance levels at $1800 and $18.75.  But the junior sector has broken out.  Both GDXJ (juniors ETF) and GOEX (explorers ETF) eclipsed 7-year resistance and made new daily and weekly highs.  … Continue reading