By: Adam Hamilton, CPA, Zeal Research - 30 August, 2019
The battered silver minersí stocks surged in recent months, staging a strong rebound rally. That overdue turnaround was fueled by silver mean reverting higher on improving sentiment after goldís decisive bull-market breakout. But silver miners still had a challenging Q2, as most of silverís gains came after last quarter ended. They continued diversifying into gold to help weather silverís endlessly-languishing low prices. Full Story
At the end of the day, I have to say that I am cautiously optimistic as long as the supports noted on my charts hold. However, even though I default to the more bullish count potentials, I will not trade them aggressively until the market proves its intention with a break out through the pivot noted on the 8-minute GDX chart. And, unfortunately, I donít think that happens in a direct fashion, but would be quite pleased if it did. Rather, I think the next pullback off this pivot resistance on GDX can be telling based upon whether it will be impulsive or corrective. So, I am going to be a bit more patient before I trade this complex aggressively to the long side.
Labor day weekend.. lighter volume expected. The gold market shows its 18-week moving average nearing $1,400. The Daily chart shows resistance around $1,560 on DEC-gold price. Support on 18-day moving average, $1,522+
The most important part of investing is knowing if you are in a bull or bear market. Itís always much easier to trade in the direction of the main trend. There are times when a market is reversing from bull to bear or vise versa that there is not a lot of confirmation the turn has completed which leaves one apprehensive about getting fully invested. The more clues you can get that the major trend has reversed the more confident you can become to put your hard earned capital to work.
Are rates on the Ten-Year Note finally bottoming? Quite possibly, according to technical indicators that we monitor closely. T-Notes touched a low last week of 1.47% after plummeting almost relentlessly from 3.49% last November. GDP was running at around 3% back then, and almost no one other than a few hardcore deflationists, your editor among them, saw rates on the Ten-Year falling below 2%. Now, however, given the look of the charts, it would be wise to prepare for a possible rate rebound, even if it proves to be temporary. Full Story
Conditions for gold and silver to rise even more is similar to 2003-2005 period. The only difference is that central banks were selling gold under central bank gold sale agreement (CBGA) and now almost every central bank is increasing gold reserves. Full Story
All of this means that the time to act is now. The proverbial train has not yet "left the station" but it's definitely beginning to chug forward, as the central bankers are finally being revealed as shallow, mindless charlatans whose schemes will be the ruin of many.
Only physical gold and silver can protect you from this pending calamity. And acquiring real, physical gold and silver is easy. It can be held at a trusted gold bullion storage company or in your own, personal safe. You can hold it in gold bullion coins or silver bullion bars. Take your pick. Just be sure you acquire some at a reasonable price...while you still can. Full Story
The best performing metal this week was silver, up 2.03 percent. Gold came in second place, up 1 percent. Inflows into ETFs backed by gold have hit 1,000 metric tons since holdings bottomed in early 2016. Bloomberg data shows that total known ETF holdings rose to 2,424.9 tons on Wednesday, which is the highest since 2013. Goldman Sachs predicts that the price of the yellow metal will climb to $1,600 an ounce over the next six months. Full Story
Personally, I love trading metals and have been doing so for quite some time. In fact, the best trade of my entire career was in silver many years ago.
But, the one thing that we commonly see in the complex is that when the market strikes a top, it most often spikes into and then strongly reverses at that top as a culmination signal. Thus far, I have not seen that in the metals. Full Story
Weíre going to get some great opportunities in the months ahead. Metals probably have one more leg up while stocks and commodities may have a final crash into major multi year cycle lows. If you want to learn how to take advantage of these opportunities now is the time to do it before the opportunity passes you by. I watched as many, if not most of the usual analysts missed the bottom in metals in May. I watched as most analysts missed the bottom in stocks in June. Full Story
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