Gold is continuing the rally it began in early November, yet it seems few gold bugs are recognizing what’s going on.

January 4, 2023

Dear Fellow Investor,

I’ve used the headline above many times over the past few decades — far too many to count, if I’d even want to know.

I’ve consistently returned to it because, 1) let’s face it, it’s easy, and 2) gold typically begins a new year on a high note.

As I noted last month and many times over the years, gold tends to bottom around mid-December and, while most investors are distracted by the holidays, it begins a rally that continues well into the next year.

It doesn’t always work out that way. Sometimes gold doesn’t rally at all, and sometimes the uptrend doesn’t last past January. But the seasonal tendency is for a bull run that begins in December and carries well into the spring.

This time has gone largely according to script, except for the fact that gold actually began moving higher in early November.

That chart is incredibly constructive and bullish. But what’s really amazing is that few of the avid metals and mining investors seem to be aware of what’s been going on.

Part of this is due to the fact that the mining stocks, from the majors down to the juniors, have not been responding to gold’s rally. That may be changing today, as there’s a lot of green on my screen right now, and the major gold-stock indices are all up over 4%.

Still, as I noted on Twitter this morning...

My tweets were greeted with some unsurprising responses like, “It's definitely a rally, certainly. The problem is the brutal dump that comes right after.”

...Which only serves to prove my point about how markets are hated most by those who know them best...and, further, why the generalist chart-watchers are often the first to recognize a gold bull market.

So what’s my point?

That gold’s breaking out, in expectation that the Fed will soon be forced to end its tightening crusade. And that many of the mining stocks, particularly the juniors, are still at bargain levels.

And, finally, that those who want to ride this train need to get on board now.

All the best,

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