Editorials

Earlier this year, Gold broke out of its cup-and-handle pattern and made its biggest breakout in 50 years.   It has steadily climbed higher but could be experiencing its first notable post-breakout correction.    There were three other instances in the last half century when Gold broke to a new all-time high.   The … Continue reading

There have been quite a few breakouts this year in precious metals.   None have been bigger or more significant than Gold breaking out of its 13-year cup and handle pattern and clearing $2100/oz easily.   Although it is overbought and could pause or correct, it remains bullish and on track for its $3,000/oz … Continue reading

Gold and Silver broke out again late last week.    Gold closed above $2700 last Thursday, and Silver followed Gold’s breakout with one of its own.    Last Friday, Silver closed above $33, surpassing resistance at $32.50, which had held Silver since the middle of May. The breakout from a rough inverted head-and-shoulders continuation … Continue reading

Last week, we wrote about the big-picture technicals in Gold and Silver, employing quarterly and monthly charts.   Gold is overbought, but history suggests it can become even more overbought. Meanwhile, Silver made its highest monthly and weekly close in 11 years.   Both metals have room to move before stiff resistance sets in. … Continue reading

For technical analysts, the end of September means fresh monthly and quarterly charts.   Our entire world is focused on the short term at the expense of the long term. As such, monthly and quarterly charts are rare.   However, they are very important as they beautifully illustrate long-term trends.   Sometimes, they provide … Continue reading

Under the global fiat currency regime, there have been two secular bull markets in precious metals: 1970 to 1980 and 2001 to 2011.   The gains in the 1970s were far more dramatic than in the 2000s.   Using daily closing prices, Gold surged 2300% in the 1970s against only 648% in the 2000s, … Continue reading

As the stock market sold off, gold mining stocks pulled back from resistance, and Silver fell below the critical $29/oz level. Growing recessionary fears, stock market weakness, and the specter of the 2008 Boogeyman pressured the sector lower.   That was all she wrote.    The sector has quickly recovered and could be poised … Continue reading

The Sahm Rule recession indicator has been triggered. The yield curve (2s and 10s) has finally un-inverted, which, if it steepens aggressively, is a sure-fire recession signal.   Out come the tweets and subscriber emails about buying gold stocks after the downturn.   After all, the precious metals sector has performed poorly during the last … Continue reading

In recent months and years, we have been writing about potential future breakouts in Gold and Silver. That potential became a reality earlier this year.   Gold exploded out of its 13-year cup and handle pattern through $2100/oz, and soon after, Silver broke out of a three to four-year range past $26/oz.    It … Continue reading

The recent sharp decline in the stock market pulled gold stocks lower. GDX declined 14%, and GDXJ declined 18% in only three weeks.    However, they have started to recover as Gold is now trying to pull away from its correction, which turned into a bullish consolidation.    GDX closed Thursday at $37.29, just … Continue reading

Gold and precious metals have performed well over the last few years. Central bank demand, De-dollarization, and other foreign sources of demand pushed Gold to break out of its 13-year cup and handle pattern.   However, Gold has not performed well in real terms.    It has not outperformed the stock market and the … Continue reading

Gold’s breakout failed and fell back into the previous consolidation zone at $2300 to $2400/oz. Silver reversed hard and is threatening support at $29.   Precious Metals must work through this technical damage before they can resume their new uptrends.    For years, we have written about the significance of Gold outperforming the stock … Continue reading