Editorials

Gold Stocks could be at a tricky juncture. They have already made significant gains, yet history, coupled with the current bullish conditions, suggests more gains coming and probably significant gains.  However, corrections of 15%-20% during these rebounds are normal and sometimes frequent (like in 2008-2009).  One doesn’t want to risk having to chase strength, but … Continue reading

In February, we wrote about the impending breakout in gold mining stocks and how it might compare to the history of breakouts in gold mining stocks.  GDX closed last week at a fresh 7-year high and in both daily, and weekly terms closed +9% above the previous high.  It now has a measured upside target … Continue reading

The precious metals sector has reached an interesting juncture. After a rip-roaring recovery, Gold and the largest and most important gold mining stocks ETF, GDX have hit multi-year resistance.  Gold was able to surpass its pre-Corona peak at $1700 and trade as high as $1789 before selling off. From 2011 to 2012, Gold peaked three … Continue reading

Over the past 100 years, there have been seven bear markets or crashes of 35% or higher. After or during every decline but one, the gold stocks enjoyed outstanding performance. It is essential to understand the underlying fundamental catalyst. A crash and recession leads to aggressive rate cuts and falling real interest rates, which in … Continue reading

The historic action of the precious metals sector over the past few weeks has continued. The strong recovery in GDX, GDXJ, and Silver has potentially invalidated the technical breakdown that occurred during the crash. It appears to be a failed breakdown. Furthermore, Gold was looking vulnerable on the weekly, and monthly chart yet was able … Continue reading

The past three weeks have been historic.  The stock market experienced its fastest 30% drop in history. GDXJ crashed by 50% within two weeks! We have never experienced anything like this in our sector. The speed of the crash was worse than in 2008.  This has been akin to a 19th-century style panic. I was … Continue reading

It has been a heck of a run for Gold since the Federal Reserve shifted policy.  Before the Fed’s last rate hike in December 2018, Gold was trading around $1200/oz. Since then it has climbed nearly $500/oz or roughly 40%. It broke out to a 6-year high and has made many all-time highs against most … Continue reading

To underscore the volatility of this past week, consider the price action in Silver.  Silver, days ago, had a chance to make its highest monthly close since October 2016. That is well over three years ago. Silver closed the week and the month at its lowest levels in six months. One week, precious metals (specifically … Continue reading

Last week, I covered the historical trajectory of the gold stocks and how today compares to the early 1960s.  The late 2015 to early 2016 period marked one of the three best buying opportunities of the past 100 years (from a secular standpoint), and gold stocks are in position for sensational performance over the next … Continue reading

When I updated my book late last year (which you can get at my website for free), I changed my view of the big picture outlook and the best historical comparison for precious metals.  From both an economic and macro-market perspective, everything points to the early 1960s.  This was a period of low interest rates, … Continue reading