POWERFUL PM SECTOR TURNAROUND TODAY POINTS TO SUSTAINED NEW HIGHS FOR GOLD SOON...

originally published Wednesday, December 13, 2023

All Misc Articles

Luck always has a part to play. As an example imagine a subscriber who stayed up late drinking on Monday night and got up very late yesterday, perhaps with a hangover and read the articles saying to buy big gold and silver stocks and then bought them around the middle of the day. He would have done better than an “early to bed, early to rise, makes a man healthy wealthy and wise” subscriber who read the articles and bought soon after the opening. What I am trying to say is that the call for a dramatic turnaround was correct, but it was some hours too early and I would also like to point out that I have no idea what the ratio is of heavy drinking subscribers to teetotallers, but I digress.

The crux of the matter is that the Fed told the markets exactly what they wanted to hear, which is that they will continue to create ever more money to drive the markets higher and higher which will guarantee big fat end of year bonuses for Wall St, keep money flowing up the pyramid to the super wealthy at the top of it, with the consequence being a weaker dollar and more inflation, which is only a problem for the little people.

The setup thus created is super bullish for gold and silver, which took off like a rocket triggering instant big gains in PM stock prices. This is exactly what we had anticipated. The sector has thus turned around and is headed much higher and now gold should get on with it and break above $2100 and continue higher.

The 6-month GDX chart below shows the dramatic turnaround today and interestingly how it rallied off the boundary of a giant Bowl base pattern.


The 2-month chart for Agnico Eagle which is the big gold sector bellwether that we have been following shows the magnitude of its gains with similar action in many other large and mid-cap gold and silver stocks.


We had expected this turnaround as set out in the article GOLD & SILVER OUTLOOK AFTER CONTRIVED FLUSHOUT posted last weekend and stepped forward to buy big gold and silver stocks yesterday, examples being Hecla Mining and Newmont Corp.

End of update.


Posted at 8.00 pm EST on 13th December 23.

The above represents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stockmarket analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.