Tag Archives: silver

Is Junior Gold Miner Relative Strength Forecasting Powerful Relief Rally in January?

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?

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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Post Stock Market Crash, Will Investors Look To Junior Gold Miners as a Hedge?

Post Stock Market Crash, Will Investors Look To Junior Gold Miners as a Hedge?
Despite equity markets hitting new highs many of the sectors were already in decline. This historic crash over the past week has been fueled by one of the most overbought markets that I can remember since the dot com bust. After the dot com bust investors sought out value in the deeply discounted commodity sector and junior miners. I expect history may not repeat but it should mimic. After the dot com bust junior mining was the place to be.
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Major Bullish Breakout in Precious Metals and Copper, Two Junior Miners Lead OTCQX in 2014

Major Bullish Breakout in Precious Metals and Copper, Two Junior Miners Lead OTCQX in 2014
Mining is not dead and still leads to the best outsized gains if you do your homework as evidenced by two of our top recommendations in 2014. Two of my featured Junior Mining Stocks lead the entire OTCQX in 2014, a global marketplace with over 10k public companies in all sectors. This is amazing as it occurred during the worst bear market in mining history and the huge bubble in biotech, housing and financials. Despite this macro trend against wealth in the earth assets two of our featured companies rose to the top of the entire marketplace. #1 Western Lithium, #2 Niocorp. Western Lithium had a 2,566% increase in daily traded volume in 2014 while Niocorp gained 394% on the year.
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Fiat Currencies Are Crashing, Precious Metals Are Breaking Out

Fiat Currencies Are Crashing, Precious Metals Are Breaking Out
In late 2014, I expected gold to bottom and that there would be a massive January effect that would lift gold, silver and the junior miners in 2015. Currently, gold is breaking above the critical 200 day moving average and the critical $1300 psychological barrier on a breathtaking move of almost $200 an ounce in less than two months. The period of lower highs appears to have ended. However, it is reaching a short term overbought condition, so a correction or consolidation is warranted and quite healthy. Investors should expect a stabilization and look for a pullback to add to positions. The long term downtrend appears to have ended so the 50 and 200 day moving averages should act as magnets of support not resistance.
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Gold and Silver Still In Major Uptrend On Long Term Charts

The Chinese and Russians were some of the largest acquirers of physical gold. Also large hedge funds some managed by industry giants such as Paulson, Soros, Rogers and Einhorn began buying ETF's and junior miners. This led to a parabolic and overbought move in precious metals, which I cautioned my readers about in the referenced article above. It should be noted a few days after this article was published silver topped at $50 and gold rolled over a few months later at $1900.
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Why Capital May Be Flowing From Equities to Junior Miners in 2014

Why Capital May Be Flowing From Equities to Junior Miners in 2014
The gold (GLD) and silver (SLV) price may be reversing over the next couple of weeks. The junior miner gold ETF (GDXJ) is reversing above the 50 day moving average and breaking above its recent three month downtrend. When the huge cash positions waiting on the sidelines or taking profits in the equity market rising on low volume return to the ignored resource sector the gains could be huge. Already the volume in GDXJ in 2014, has jumped outpacing 2012 and 2013. On the other hand the S&P500 has been rising on light volume which is often a warning sign that the extended rally is getting exhausted. This indicates to me that possibly the large institutions are accumulating the juniors after all the retail investors jumped ship. Prices could jump rapidly in the Toronto Venture Exchange where most of the legit junior miners are traded. These small cap juniors could gap higher as the major institutions are hardly exposed to the mining sector at all. It appears that some of my charts are showing a potential reversal in the precious metals. Get ready for an incredible bounce higher in precious metals. Here are five reasons why.
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China Must Look Abroad For Metals and Energy To Support Growth

China Must Look Abroad For Metals and Energy To Support Growth
Headlines about a Chinese economic slowdown may get good web traffic, but the real story is that China is buying up uranium and other resources around the world, says Gold Stock Trades writer Jeb Handwerger. Meanwhile, tensions in Russia highlight the massive country's resource dominance in natural gas, oil, uranium, platinum group metals, rare earths and nickel. Handwerger tells The Mining Report that North America is already acting to develop resources that can meet both domestic and international demand—and this global geopolitical uncertainty is an investment opportunity.
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Pullbacks In Gold and Silver May Be Buying Opportunities as Trends Turn Bullish

Pullbacks In Gold and Silver May Be Buying Opportunities as Trends Turn Bullish
When no one was buying and in fact shorting precious metals and energy, I was one of the only writers who said at the time, "This instability in the Middle East and around the world means investors should look for assets that maintain value during chaotic times. Precious metals and energy could be one of the safest areas to hedge against rising Middle East turmoil." Now 8 weeks later gold has rallied $200, silver has gone up more than $6 and oil is about to break through multi-year highs and could move to $150 a barrel. All over the headlines investors are scrambling for safe havens as the U.S. prepares to invade Syria.
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