LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

A Key Gold Bull Market Signal
By: Hubert Moolman

Finally… Gold Breaks out Through Key 5-year Resistance Level
By: Steve St. Angelo, SRSrocco Report

Gold breakout: the second phase of the bull is underway (video update)
By: Gary Savage

The Fed Is Running Out Of Bullets
By: Dave Kranzler

This Billionaire Says Gold Has Everything Going For It
By: Frank Holmes, US Funds

Will Inflation “Save” Social Security?
By: Stefan Gleason

Dancing closer to the exits
By: Richard (Rick) Mills, Ahead of the herd

The Trade No One Saw Coming
By: Avi Gilburt

Robert Lambourne: BIS' activity in gold market continues to diminish
By: Robert Lambourne

Fed Meet: Outrageously Bullish For Gold
By: Stewart Thomson, Graceland Updates

 
Search

GoldSeek Web

 
Gold and Silver Are Feeling Frisky


 -- Published: Monday, 18 March 2019 | Print  | Disqus 

By: Dave Kranzler

I sourced the chart below from a blog called The Macro Tourist. I added the title and the two yellow trend lines. The chart shows the daily price of gold since the inception of the bull market in 2000-2001. Last Friday (March 8th) gold popped $12 +/- (depending on the time from which you measure). I mentioned to some colleagues that “gold may be starting something special.”

The price of gold retested the $1300 level last week.  Aggressive futures short-selling on the Comex took the price of gold below $1300 on Thursday last week. The price ambush failed to keep gold below $1300, as strong Indian demand and a growing expectation that the Fed will stop its balance sheet liquidation and eventually re-start QE.

A lot of current precious metals and mining stock investors were not around for the 2008-2011 bull run and even less were around for the 2001-2006 bull run. The move from January 2016 to July 2016 was a head-fake that was part of the long period of  consolidation shown in the chart above. Many of you have not experienced how much money can be made investing in junior mining stocks when a real bull move takes place.

The chart above shows how cheap gold is vs. the SPX. Similarly, the mining stocks in relation to the price of gold are almost as cheap as they were in 2001 and the end of 2015. In 2016 the GDXJ ran 300% from January to July. But in 2008, the HUI ran from 150 to 300 in 60 days and then from 300 to well over 600 over the next 2 1/2 year. Many juniors increased in value 10-20x. The move from 2001-2006 provided the same type of excitement.

I believe the long period of consolidation in the precious metals sector is finally ending. While there’s always the possibility that it could drag on longer, the risk/reward for investing in the juniors right now is as highly skewed toward “reward,” as it was in 2001 and 2008. The market will not go straight up and there will be some gut-wrenching, manipulated sell-offs. But I believe patience will be rewarded. This means not going “all-in” all at once but wading in slowly over time.

 - Dave Kranzler


| Digg This Article
 -- Published: Monday, 18 March 2019 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2019



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.