| I dispatched a market summary to our Gold Newsletter Alert readers last Thursday in which I outlined the many powerful forces driving gold higher. |
| I noted how gold “wants” to go higher for these reasons...and updated readers on big developments from companies in our junior mining stock portfolio that were driving their share prices higher. |
| The one thing I didn’t do was to warn my readers about a big gold sell-off that was likely coming the next day. |
| I should have, because that’s become a regular feature of the gold market over the last month or so, as this chart clearly shows: |
| It’s interesting to note how regular this pattern has become in recent weeks, with bear attacks coming each and every Friday since mid-January. |
| Last Friday’s was particularly severe, with gold being slammed by over $50 at one point and silver plummeting by a full dollar. |
| Fundamentally, this behavior is curious. In an established gold-price uptrend as we’ve had for the last year, against the backdrop of a volatile world and trading markets as we have presently, market participants have typically shied away from selling gold going into the trading vacuum of a weekend.
If anything, they’ve closed any short positions going on Fridays, only to reinstall them on the following Monday.
Not so over the last month.
So why would big traders (the kind who can move markets in this fashion), sell so aggressively on a Friday? |
| One possibility is that these market actors are actually buying aggressively and desperately...and want to do so at a lower price.
And perhaps it’s their subsequent purchases at those lower levels that are fueling the quick rebounds that we’ve seen in gold, as also shown in the chart above. |
| We’re seeing another one of those rebounds today, as both gold and silver are bouncing back nicely.
And the big picture remains exceedingly bright. For a bit of perspective, consider this chart of gold’s performance that just caught my eye on Kitco.com: |
| It’s been a great year, month and, so far, day for gold.
So what to do about it?
First, of course, make sure you own physical gold and silver. The dollar and all other fiat currencies are going to depreciate significantly over the years to come, and whatever money you put into gold and silver now is likely to fully protect the purchasing power of those funds.
Second, look to leverage this historic bull market. There are lots of ways to do that, but the junior mining stocks — like those in our Gold Newsletter portfolio — are at historically low valuations even as gold is at record levels and climbing higher.
If you aren’t already a subscriber, CLICK HERE to sign up before this sector can truly take off. |
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Junior Mining Stock Opportunities |
| Finally, I’d like to strongly recommend our Gold Newsletter YouTube channel, where my friend Kai Hoffman is posting informative interviews with management of many of today’s top junior resource companies.
This channel isn’t limited to companies in the Gold Newsletter portfolio — it features factual summaries and updates for a wide array of junior resource companies making big news.
I urge you to click on the links below to view some of Kai’s latest interviews and see all of the fascinating content on our YouTube channel. |
| Brien Lundin
Publisher, Gold Newsletter
CEO, the New Orleans Investment Conference |
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