Editorials

      The precious metals sector started September with a bang. Gold, which had already eclipsed $1300/oz, pushed to $1360/oz while Silver broke its downtrend line (from its late 2012 and 2016 peaks). Unfortunately, precious metals would soon reverse course and more. Gold ended September down nearly 3% and below $1300/oz. Silver lost … Continue reading

  In recent weeks both metals and miners have declined somewhat sharply after reaching resistance. Gold peaked just below major resistance near $1375/oz and GDX, the biggest ETF for gold miners peaked at its October 2016 and February 2017 highs. If precious metals can break through this resistance then a major move higher would … Continue reading

        We started employing analog charts during the latter stages of the seemingly forever bear market in precious metals. Comparing current to past trends by using price data is not considered technical analysis but it is extremely valuable because history tends to repeat itself. It also helps us identify extremes as … Continue reading

    Gold cleared $1300 early in the week and padded its gains on Friday even amid a bullish weekly reversal in the US Dollar. Gold’s breakout was validated by a strong monthly close on Thursday and then a strong weekly close Friday. As predicted, the miners perked up with the breakout in Gold. … Continue reading

    Welcome to the dog days of summer. The low volatility in precious metals continues. Janet Yellen or some other Fed heads said something Friday. Precious Metals sold off but quickly recovered. It appears that not much has transpired in recent weeks as precious metals have grinded higher, albeit slowly. However, while it … Continue reading

  Three weeks ago we discussed how Gold needed to perform considering the US$ index was likely to bounce due to an oversold condition and extreme bearish sentiment. We wrote: “Simply put, Gold will have to prove itself in real terms if it is going to hold its ground or breakout as the US$ … Continue reading

  The outlook for precious metals has changed quite a bit over the last month. In early July, Gold and gold stocks were weak and threatening severe breakdowns below key levels such as $1200 Gold and $21 GDX. Those moves reversed course and now Gold and gold stocks are threatening resistance. The prognosis has … Continue reading

    The decline in the US$ index in 2017 has been relentless. From a high of nearly 104 at the end of 2016, the US$ index has steadily declined to as low as 93.00. While this has certainly fueled the strength in precious metals, it has not been able to lift the sector … Continue reading

  Three months ago (April) we covered the reasons we primarily invest in junior exploration companies. We promised to follow up with some criteria we follow in attempting to pick winners. Here are five things we look for when evaluating and selecting junior exploration companies.     Management has a track record and experience. … Continue reading

Disaster in precious metals land has been averted (for now) as the market unwinds what appears to be sudden excessive bearish sentiment. Surveys such as the daily sentiment index reached single digit levels for Gold and Silver (the previous week) while the net speculative position in Gold and Silver has declined dramatically in recent weeks. … Continue reading

Last week we wrote that Gold’s poor performance in real terms could reflect its worsening fundamentals. Real interest rates are rising because the rate of inflation has peaked and bond yields are rebounding. It is a double whammy for precious metals. This is not permanent but something that could last a few quarters. Gold … Continue reading

  Intermarket analysis is a rather new field in technical analysis but one of my favorites because it is critical in understanding Gold. Asset classes like stocks and bonds are enormous and aren’t as influenced by as many factors as Gold. Trends in stocks, interest rates, commodities and currencies impact Gold in one way … Continue reading