Gold roared out of the gate in yesterday’s opening session and is adding to those gains today.

January 5, 2021

Dear Fellow Investor,

I haven’t bothered to check, but I know I’ve used this same headline in early-January editions of Golden Opportunities in recent years.

In fact, I used it just yesterday in our first Gold Newsletter Alert of the new year.

So why do I keep returning to this headline?

Because gold has made a habit of firing the afterburners when the calendar turns from one year to the next, particularly since the bear market bottomed in December of 2015.

And over that five-year period, these new-year moves have built upon the rallies that actually began from two weeks to as much as two months earlier.

In this case, as you can see on the accompanying chart, gold actually bottomed on November 24th — a little early, but not the earliest we’ve seen.

In regard to performance on the first day of trading in the new year, however, yesterday may have set the record.

Spot gold soared $44.20 (2.33%) yesterday, decisively breaking through the five-month downtrend also noted on our chart. Silver confirmed the move with a classic outperformance, gaining $0.84 (3.19%). And the gold stocks, despite a down day in the broader equity markets, also outperformed to the upside.

As I write today, gold’s up another $10, while silver is outperforming on a percentage basis once again.

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Multiple Factors At Play

There have been many reasons offered up by the talking heads for these sharp moves in the gold, from the hiccups in vaccine distribution, to the spread of the mutated Covid-19 virus, to the risk of today’s Georgia elections and more.

One big factor is the fall in real yields as inflation expectations have risen considerably.

For my part, I think it has as much to with the simple turning of the calendar as anything else because, as noted above, we’ve seen this behavior time and again.

It’s important to note that, while gold and silver are getting all the headlines, the advantage of subscribing to Golden Opportunities is that you were told this would happen months ago.

Gold is up about $190 since that November 24th low, but $135 of that gain came before yesterday’s rip-roaring opening session. By being early, you’ve not only maximized your gains, you’ve potentially multiplied them.

Along with my message of “buy now!” over the last couple of months, I’ve also urged readers to ignore the daily fluctuations in the metals, and to instead maintain a focus on the long-term fundamentals and technicals pointing toward a secular bull market.

In our last issue of 2020, under a headline of “Rallying Cry,” I cautioned you to ignore the big gains of that day and reviewed the fundamental and technical evidence for a much longer, multi-year bull run.

I closed out my market commentary with this:

“…Our predictions of a late-year bottom have come to pass, albeit a little earlier than we’d expected….And the rally since then has gone largely unnoticed by many. Consider that, with little fanfare, the yellow metal has risen more than $100 from its levels of just a few weeks ago.

“And it seems that there’s more to come in the new year.”

We’re seeing those additional gains right now…but I would reiterate my advice to ignore these short-term moves, as positive as they may be. That’s because the coming days could see anything, from an acceleration of the rally to profit-taking that would erase much of the move.

We simply can’t be sure what will happen over the days just ahead in these markets…just as we can be very confident of what will happen over the coming months and years.

Again, the fundamental necessity of very significant currency debasement, combined with the technical evidence, tells us that gold and silver…and the associated mining equities…will trade for far higher levels over the next few years.

It’s our job to be positioned to profit, and perhaps build generational wealth, from these historic moves.

In that regard, our favorite junior mining equities — which we’ve been recommending very highly for purchase in Gold Newsletter over the past few months — have been almost universally soaring over the last two days.

This will be a long and very profitable run, so there’s still plenty of time to get positioned. If you’d like to get full details on all of our top recommendations, CLICK HERE to subscribe to Gold Newsletter.

All the best,

Brien Lundin
Editor, Gold Newsletter
CEO, the New Orleans Investment Conference