Editorials

Recent price action in Gold and gold stocks suggests the worst of the correction is over. Gold has broken above initial resistance ($1835/oz), and gold stocks have shown sustained follow-through after registering an extreme oversold condition. However, Gold has only broken out of a 5-month base, and a confluence of massive resistance is looming at … Continue reading

Ask any gold bull about Gold sentiment, and they’d tell you it’s bearish. Generally, that is correct. Stocks are back at new highs again, crypto is threatening to break higher, and the US Dollar has trended up for months. More importantly, Gold and gold stocks have been in a downtrend for 15 months. However, Gold … Continue reading

The oversold bounce in the gold stocks has run into initial resistance while Gold is trading around resistance around $1800. The question is if this rebound can extend if it will pause or, will the sector start giving back some of the gains? First, let’s look at recent price action and the current setup. We … Continue reading

Ask a gold bull why Gold hasn’t performed well over the past 15 months, and you might hear the words manipulation, suppression, or Bitcoin in the response.  You won’t hear that Gold gained nearly 80% in two years and was historically overbought. Last but not least, you won’t hear about the fundamental changes that have … Continue reading

Market timing is important, but over the long run, company selection is more important. We want to own the companies that can add value and more than survive in a flat-price environment within this sector. At the same time, we want to find the companies that will lead and leverage gains on the upside.  Here … Continue reading

Back in 2012, I was on a property tour with Bob Moriarty.  When we got around to discussing stocks, Bob mentioned a company he thought could become the biggest thing, not just junior mining but mining in general. Novo Resources was trading around $0.40 at the time. Five years later, the stock surged well above … Continue reading

Last I wrote to you, I expected precious metals could begin a decent rebound. The gold stocks were very oversold, Gold had cleared $1800/oz, and the Fed would be easier. Unfortunately, Gold failed at $1835 and this week failed at $1800/oz. Now the gold stocks are back at their lows. This isn’t very pleasant, but … Continue reading

The market perceived the Fed statement a few weeks ago as dovish, and last Friday’s jobs report, which was disappointing, reinforced that. As a result, the previously oversold precious metals sector is rallying. The charts show there are clear rally targets. Let’s start with GDXJ, the best proxy for most who invest in the sector. … Continue reading

No, the Fed pushing out rate hikes with language doesn’t amount to a macro catalyst. History shows that a macro catalyst for Gold is usually a shift in Fed policy or a correction or bear market in the stock market. These things typically lead to declining real interest rates, which drives Gold higher.   In 2017 … Continue reading

In our last editorial, we noted that if the gold stocks (HUI & GDXJ), which were in a precarious position, lost their lines of support, it could lead to another 15% to 20% downside. This week both the HUI and GDXJ lost support and are trading at fresh 52-week lows. The HUI has 10% downside … Continue reading

It’s not advisable to be presumptuous or make absolute statements, but the evidence is convincing.  Before I answer the question, let me set the stage. Last week we posted the Gold correction analog chart, which, if we take the average of the three worst bear market corrections, argues for a $1590 bottom in the spring … Continue reading

Gold remains in correction mode. Even if Gold were consolidating bullishly (from an immediate perspective), it would need more time to build a viable handle on the 9-year long cup pattern. Long-term volatility indicators, as well as historical analogs, argue it needs more time.  Here is how the current correction in Gold compares to the … Continue reading