Category: Gold and Silver Stocks 2020
The analysis published under this category are as follows.
Thursday, December 24, 2020
Gold and Miners Are Not in Santa's Bag / Commodities / Gold and Silver Stocks 2020
By: P_Radomski_CFA
Do you feel the Christmas spirit when it comes to the yellow metal and miners? Because we don’t. Multiple signs over the past few days point to bearish weeks ahead for gold and the gold miners. The VanEck Vectors Gold Miners ETF (GDX) - the most liquid vehicle for investors and traders to gain exposure to gold mining companies – is indicating that things are only about to go downhill from here and a lack of action from options traders only serves to confirm that.
Despite rallying by 8.7% over a three-day stretch, the GDX traded sharply lower on Friday (Dec. 18), and yet again, failed to recapture its 50-day moving average (unlike gold). Moreover, GDX also closed below its early-December intraday high, while the GLD ETF remained above its analogous price level.
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Sunday, December 20, 2020
A Bigger Picture View of HUI Gold Stocks / Commodities / Gold and Silver Stocks 2020
By: Gary_Tanashian
As Huey pushes his cart of rocks out of the dark and up the hill…
In NFTRH we did a lot of work managing the oncoming correction, the valid reasons behind it (these reasons are beyond the scope of this post, but don’t listen to the perma-bulls, they were more than valid and readable in advance), the now nearly 5 month old correction (technically still intact) and more recently the improved risk vs. reward after HUI hit our long-standing ‘best’ target of 280 .
There is another downside target at 260 but it may just be time for the drudgery (AKA consolidation/correction to bleed out the excesses) to end. The answer to confirm that will be left to ongoing work we do on shorter time frames, including daily charts in the weekly report and in-week updates. But for this post, I want to take a perspective look at HUI’s weekly chart.
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Monday, December 14, 2020
Gold Price Green Light For Mining Stocks / Commodities / Gold and Silver Stocks 2020
By: Zeal_LLC
The gold miners’ stocks are finally perking up again, after spending months slogging through a grinding correction. Contrarian traders are taking notice, starting to redeploy capital in this high-potential sector. Gold miners’ earnings and thus stock prices are overwhelmingly driven by gold’s fortunes. And the yellow metal’s recent technicals are signaling a mature correction, green-lighting gold stocks’ next major upleg.
Bull markets are an alternating series of uplegs followed by corrections, for every few steps forward there is always one step back. These periodic selloffs are essential for bulls’ health and longevity, rebalancing sentiment and technicals before they get too overheated. Popular greed growing too extreme early in bulls will prematurely slay them. All available near-term buying is sucked in, exhausting capital inflows and upside.
The most-important times to trade during bull markets are correction bottomings and upleg toppings. The mission is to buy in relatively-low at the former, then sell relatively-high at the latter. That’s the lowest-risk and fastest way to multiply wealth in ongoing secular bulls. But executing on this strategy is challenging in real-time, because these tradable major lows and highs aren’t definitive until well after they’ve passed.
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Saturday, November 28, 2020
The Gold Stocks Correction is Maturing / Commodities / Gold and Silver Stocks 2020
By: Gary_Tanashian
The last time I wrote a title like the above was on June 19th; and wouldn’t you know that the correction ended the very next trading day? The consolidation breakout on Monday, June 22 created the gap you will see as a downside objective on the daily chart of HUI below.
Gold Sector Correction is Maturing (6.19.20)
That was a routine correction as gold and the gold miners were still part of one big relief party as central banks flooded the markets with liquidity to meet the deflationary crisis of the virus-ridden spring.
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Tuesday, November 17, 2020
This Chart Signals When Gold Stocks Will Explode / Commodities / Gold and Silver Stocks 2020
By: Jordan_Roy_Byrne
Gold Stocks remain in a correction, even if the October 29 lows continue to hold into December.
Corrections are a function of price and time, and often in this sector, a correction can continue in terms of time, well after a low in price is made. But I digress.
The most significant and most consistent moves to the upside usually occur after a crash or after a major breakout.
Gold and silver stocks made tremendous moves after the Covid crash and remain in position for tremendous upside moves over the quarters ahead.
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Wednesday, November 11, 2020
Gold Stocks Post 2020 US Election Outlook / Commodities / Gold and Silver Stocks 2020
By: Jordan_Roy_Byrne
We last wrote to you roughly ten days ago.
We concluded, “It appears GDX and GDXJ will test their September lows at $37 and $52 reasonably soon. Should GDX & GDXJ break those lows to the downside, then we should get ready to buy.”
GDX and GDXJ did break their September lows but only for a day. They closed below those levels on October 29 and then gapped down the next day.
But as it stands, that gap lower figures to be the low in price for this correction.
The best sign for the sector is the technical outlook for the Dow Jones US Gold Mining Index, which is weighted heavily towards the largest handful of companies in the industry.
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Sunday, November 01, 2020
Gold Stocks Continue To Disappoint / Commodities / Gold and Silver Stocks 2020
By: Kelsey_Williams
Apparently investors don’t tire of hearing the same old thing; and their advisors willingly provide the same questionable advice: “The best way to play this new bull market in gold is to buy gold stocks” or something to that effect. Are gold stocks a better choice than golditself? Let’s find out…
Four years ago, in 2016, I wrote the following:
“This year’s turnaround in gold mining shares had helped to buoy the hopes and dreams of investors who were ‘betting’ that their long, agonizing wait for euphoric, exponential gains is over. They continue to believe that the future for the Gold Mining Industry is quite rosy. Unfortunately, they are probably wrong.” (see Gold Mining Shares Are A Lousy Investment)
Just prior to that article being published, the HUI gold stock index had peaked at almost the 300 mark after tripling in price from the 100 level earlier that year in January.
The rise in share prices of gold stocks outstripped the increase in physical gold prices quite handily. Gold, itself, rose from $1070 to $1370 for a gain of twenty-eight percent. That’s nice, but not nearly so nice as the two-hundred percent gain in gold stocks.
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Saturday, October 31, 2020
Gold Is the Winner of the U.S. Presidential Election / Commodities / Gold and Silver Stocks 2020
By: The_Gold_Report
Frank Holmes, CEO and chief investment officer of U.S. Global Investors, says it doesn't matter if the U.S. sees a Red victory or a Blue victory in the presidential election; gold will be the real winner. In this far-ranging interview with Streetwise Reports, he discusses gold's prospects post-election, inflation, stock market performance, criteria to evaluate mining companies, and companies in U.S. Global funds.
Streetwise Reports: Frank, let's begin with gold. After a substantial rise in the price of the metal earlier this year, which went as high as $2,036 an ounce in early August, it has since been trading sideways, consolidating roughly around the $1,900 mark. What effect do you think the U.S. presidential election will have on the price of gold? Do you see different scenarios based on which candidate wins?
Frank Holmes: Well, you can hit the red button or the blue button, but I'm hitting the gold button, no matter which one it is. You have to sit back and look at macro forces and macro themes to understand gold and the drivers of gold.
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Thursday, October 29, 2020
The Most Profitable Way To Play The Gold Boom / Commodities / Gold and Silver Stocks 2020
By: Submissions
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Wednesday, October 28, 2020
Smart Money Is Going All-In On This New Gold Frontier / Commodities / Gold and Silver Stocks 2020
By: Submissions
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Tuesday, October 27, 2020
Gold Stocks Still Correcting / Commodities / Gold and Silver Stocks 2020
By: Zeal_LLC
The gold miners’ stocks are still correcting, continuing to rebalance both technicals and sentiment. This sector’s huge surge into early August spawned extreme overboughtness and universal euphoria, which are gradually being bled away. This same necessary and healthy corrective process is underway in gold itself, which overwhelmingly drives gold-stock price levels. This is leading to great buying opportunities.
Gold-stock speculators and investors are growing weary, wondering when miners’ next upleg will finally get running. Fully 2.5 months have passed since the gold stocks were rocketing higher with gold last summer, generating great excitement. Since then this sector has gradually ground sideways to lower, leaving traders increasingly discouraged. More are abandoning gold stocks as weeks drag on into months.
Corrections certainly aren’t easy to weather psychologically. Their mission is to eradicate the universal greed at preceding upleg toppings. That means gutting traders’ enthusiasm for a hot sector that has just soared. Losses unfolding and deepening over time are the only way to swing the sentiment pendulum back from euphoria to apathy to despair. That requires the great majority of traders to be forced to capitulate.
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Tuesday, October 27, 2020
The $126 Billion Gold Opportunity in Australia / Commodities / Gold and Silver Stocks 2020
By: Submissions
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Monday, October 26, 2020
The Top Gold Stock for 2021 / Commodities / Gold and Silver Stocks 2020
By: Submissions
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Friday, October 16, 2020
Why You Should Focus on Growth Stocks Today / Commodities / Gold and Silver Stocks 2020
By: John_Mauldin
By Justin Spittler : My friend who’s a novice investor asked for advice recently. He was “bargain hunting” for cheap stocks, and trying to decide between buying Kohl’s (KSS) or ExxonMobil (XOM).
I cringed. “Listen,” I told him. “You’re thinking about this all wrong.”
I get where my friend is coming from. From childhood we’re taught to be financially prudent. To seek bargains and avoid spending money on expensive things.
In most areas of life this is smart advice. Drive a reasonable car, live in a reasonable house, book reasonable vacations with your family. But there’s one big problem.
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Sunday, October 11, 2020
Gold Stocks Are Cheap, But Not for Long / Commodities / Gold and Silver Stocks 2020
By: The_Gold_Report
Peter Krauth explains why he believes gold stocks are "churning out some serious profits that are likely to just keep getting better."
It's not too late for you to buy gold and gold stocks on the cheap.
If you haven't already, you may want to seriously consider it.
That move might set you up for a run over the next few years that could turn into your single best investment…ever.
You see, gold stocks are churning out some serious profits that are likely to just keep getting better.
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Saturday, October 10, 2020
Gold Miners Ready to Fall Further / Commodities / Gold and Silver Stocks 2020
By: P_Radomski_CFA
It didn’t take long for the mining stocks to turn south once again. No wonder, given that their breakdown was more than verified.
Additionally, they also got bearish support from gold, the stock market, and the USD Index, which also confirmed their decisive move. For more details, let’s take a closer look at the chart below.
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Tuesday, September 08, 2020
Gold Stocks in Correction Mode / Commodities / Gold and Silver Stocks 2020
By: Zeal_LLC
The gold miners’ stocks are mired in correction mode, which isn’t surprising after their mighty post-stock-panic upleg. Huge buying catapulting them higher left this sector extremely overbought. Corrections are normal and healthy after prices get too stretched technically. They eradicate upleg toppings’ excessive greed, rebalancing sentiment. That paves the way for bulls’ next uplegs, and offers great buying opportunities.
The most-popular gold-stock benchmark today is the GDX VanEck Vectors Gold Miners ETF. It includes the world’s biggest and best gold miners, dwarfing its peers in size. Launched way back in May 2006, GDX’s first-mover advantage has grown insurmountable. This ETF’s $17.9b in net assets this week are running 31.4x larger than its next biggest competitor’s in the 1x-long major-gold-miners-ETF space. GDX is king.
Gold stocks have a well-deserved reputation for excessive volatility, which is a key reason they are so alluring. When the stars align right for them, meaning a big and persistent gold upleg, their stock prices skyrocket! We just witnessed that in this sector’s enormous upleg following March’s COVID-19-lockdown-fueled stock panic. The subsequent gold-stock gains were among the largest out of all stock-market sectors.
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Tuesday, August 11, 2020
Gold Miners Junior Stcks Buying Spree / Commodities / Gold and Silver Stocks 2020
By: Richard_Mills
Canadians, at least those fortunate enough to enjoy a long weekend, returned to their desks Tuesday to watch gold prices crack another milestone - $2,000 per ounce - as the spectacular summer rally for the precious metal continues.
At time of writing, spot gold’s last bid was $2,019.20, marking a $42 gain since Monday’s trading session. Silver prices also experienced a major leg up, with spot silver posting a $1.68 increase to $26.01, as of 17:05 Eastern time - a 7-year high.
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Wednesday, August 05, 2020
Gold Trifecta of Key Signals for Gold Mining Stocks / Commodities / Gold and Silver Stocks 2020
By: P_Radomski_CFA
Nothing lasts forever, and the brightest flame burns itself out the fastest. That could very well apply to the current situation around PMs.
Speaking of indications pointing to the situation being excessive, let’s take a look at the USD Index.
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Tuesday, August 04, 2020
Gold Stocks Autumn Rally / Commodities / Gold and Silver Stocks 2020
By: Zeal_LLC
The gold miners’ stocks have rocketed higher this summer, smashing out of their usual summer-doldrums sideways grind. That atypical strength has been driven by gold steadily marching to major new secular highs, fueled by strong investment demand. This has carried gold stocks and the metal they mine back to their traditional strong season, which begins with robust autumn rallies usually accelerating in late summers.
Seasonality is the tendency for prices to exhibit recurring patterns at certain times during the calendar year. While seasonality doesn’t drive price action, it quantifies annually-repeating behavior driven by sentiment, technicals, and fundamentals. We humans are creatures of habit and herd, which naturally colors our trading decisions. The calendar year’s passage affects the timing and intensity of buying and selling.
Gold stocks exhibit strong seasonality because their price action mirrors that of their dominant primary driver, gold. Gold’s seasonality generally isn’t driven by supply fluctuations like grown commodities see, as its mined supply remains relatively steady year-round. Instead gold’s major seasonality is demand-driven, with global investment demand varying considerably depending on the time in the calendar year.
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