Category Archives: Precious Metals

Precious Metals Pullback To Uptrend Provides Buying Opportunities in New Bull Market

This is turning out to be one of the most powerful rebounds in gold and silver's recent history. For a long time I have advocated patience and fortitude with respect to wealth in the earth assets and continued to find the top performers in the junior gold mining sector. Those that have stuck with me are positioned now for this great run as I believe that this is the beginning of a major new bull market. I have warned you for weeks now that new investors in juniors should wait for pullbacks to rising moving averages rather than chase. The miners were beaten so low in this bear market that like a compressed spring bounced so hard so fast that a healthy pullback to upward sloping 50 and 200 day moving averages like we are seeing now is quite healthy and restorative. Here are three top junior gold miners to watch.
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Majors Should Look at Advanced Stage Junior Gold Miners Nearing Feasibility

(Originally Published and sent to Premium Subscribers (6-2-16) It appears the Junior Gold Miners (GDXJ) are giving the investment community a secondary buy point on the now ascending long term moving averages as they bounce off and find support at these critical technical levels at the 50 and 200 Day Moving Averages. I thought we could still be a few weeks away from a bullish reversal but it appears some of our featured sponsors and shareholdings are breaking out.
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Returning To A Gold Standard: Why Gold and Silver are Beginning This Historic Breakout

For years I have been highlighting precious metals as a store of value and high quality gold explorers and developers with the potential to leverage those gains, despite them being completely out of favor. Seeing a historic irrational correction in gold and silver, exacerbated by manipulation from several banks, I continued to highlight the virtues of patience and fortitude. I also tried to teach the virtue of ignoring the news and the mass media whose attempt is to make you off balanced and misdirecting you to sell your precious metals so you can buy into inflated stocks/sectors on the verge of their own crash like Bre X, Enron, Counrtywide and Bernie Madoff.
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Junior Gold Miners Breakout As Fed Does “One and Done” on Rate Hikes

The junior gold miner ETF (GDXJ) broke out of a handle that was formed near its one year high around $27 after the Fed stayed put on interest rates and stated there may only be two hikes instead of four this year. This should continue to be bullish for precious metals, commodities and the junior miners. I believe we are in a new bull market for junior miners that has followed a five year historic rout in junior resource stocks. The early stages of a new uptrend are when some of the greatest gains can be made.
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Did Precious Metals and Junior Gold Miners Just Bottom?

Huge amounts of institutional capital may be flowing into the major gold miners such as Barrick, Newmont, Kinross and Agnico Eagle which have all seen big moves off of December lows. There is an increasing probability that we saw the bottom at the end of 2015. Major investments have taken place recently in the junior sector specifically in uranium (URA), Gold (GLD) and Lithium (LIT). Fission (FCUUF), Gold Standard Ventures (GSV), Orocobre (ORL) and Oban (OBM) have all recently raised large amounts of capital. This could be just the beginning as other high quality situations may find the critical cash needed to advance mineral projects.
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Is Junior Gold Miner Relative Strength Forecasting Powerful Relief Rally in January?

Looking at the chart above notice that even though gold (GLD) has hit new lows, the junior gold miners (GDXJ) are finding support and the Momentum indicators are positive. That may indicate a rebound or at least a relief rally may soon be underway in the junior miners possible following tax loss selling. December tax loss selling is always challenging in the junior markets during good times, how much more so in these historically tough times. The good news is that January is usually rally time for the junior miners as investors reposition for 2016 in beaten down names. I expect that the first three months of 2016 could be exciting for some of the highest quality names with top assets, treasury and management.
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US Dollar Double Top? Could US See Recession in 2016?

I predicted back in 2011 that Europe would follow the US by printing and that further bailouts of weak Euro nations would cause a decline in the Euro. As I expected back in 2011 capital flowed to the oversold US dollar. Commodities and precious metals did not rally with the dollar as a safe haven and caused a major commodity de-leveraging weakening major mining financial institutions such as US Global Investors, Sprott, Pinetree, Dundee and many others. In 2011, many funds began to raise cash and reduced their exposure to mining related equities. This has been going on now for more than four years, turning into one of the worst bear mining markets in history.
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Junior Gold Miners (GDXJ) on Verge of Major Breakout From Base at $23

Junior gold miners may be on the verge of a major breakout past three month highs after The Federal Reserve continues to push back interest rate increases. There is a stealth rally underway for junior miners as gold tests resistance after bouncing off its lows in late July. Investors appear to be rotating from the Dow into precious metals as investors may be anticipating even greater easing efforts globally due to China's recent weakness and Yuan devaluation. This could continue to push precious metals, the large miners such as Barrick Gold (ABX) and mid-tiers such as Alamos Gold (AGI) higher. The fear of rate increases that pushed precious metals down is decreasing. The recent rally in precious metals and junior miners may be just beginning as I expect to see increased mergers and acquisitions off of these depressed low prices.
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Fed Refuses To Raise Rates on Slowing Economy Boosting Gold and Junior Miners

For smart investors watching the gold-Dow ratio rather than mainstream media headlines, this is an exciting time to be a precious metals investor. The world seems to be conspiring to push the price of gold higher, with continued zero interest rates, Chinese stock market volatility and more unrest in the Middle East. In this interview with The Gold Report, Gold Stock Trades Editor Jeb Handwerger lays out his short list of junior mining companies that have been actively adding value, and that will be in demand when all eyes are on the sector.
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Once in a Lifetime Buying Opportunity in Junior Miners Might Not Last For Too Much Longer

As the summer comes to an end, investors return to their offices and trading volumes tend to pick up after Labor Day. I expect that many are realizing the markets have considerably changed since May. Global equity markets are all off led by the price decline in the S&P500 which has broken its four year uptrend forming a technically bearish death cross. The name of the game right now is capital preservation and plunge protection. Look for rallies in equities to be short lived. The Fed is expected to raise interest rates for the first time in many years on September 17th. However, there is growing uncertainty that will not occur especially due to the recent equity market volatility. Many other major economies such as China are announcing stimulus plans to prevent a recession. As the global stock markets rolls over on fear of a US Rate increase, it could boost the value in the beaten down precious metals and commodities as they may be seen as a safe haven to protect against a plunge and preserve capital. Here are ten reasons why I believe precious metals, commodities and especially junior miners may be the best place to be over the next 3-5 years. The bottoming process for the juniors after a seven year decline may be ending in the next few months as they once again come back into favor for the following ten reasons.
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