| Well, this is nice to see.
|
| After being fairly public — including quotes in MarketWatch — with a prediction that it would take all of Monday, and perhaps Tuesday, for the gold and silver markets to settle down and rebound, I was glad to see both metals leaping higher yesterday.
Spot gold gained over $285 (6%)...silver jumped nearly $6 (7.5%)...and the rest of the precious metals and mining sector tagged along.
The rally continued in overnight trading, with gold adding another $150 to get back to nearly $5,100. Unfortunately, the Western traders hit it again in New York trading, and it stands up only about $10 as I write. Silver is up about $1.50.
|
| I’m OK with a relatively flat day in the metals after what we’ve been through over the last five trading sessions.
|
| As you can see from the charts below, the entire affair — the nose dive through yesterday’s bounce-back — has taken the gold price down to levels not seen since January 23rd, and for silver you’d have to go all the way back to January 13th to see similar prices.
|
| So, a stomach-turning experience that has left us at levels that gold and silver bugs wouldn’t have hoped for in our wildest dreams at this point last year.
The salient question now is whether we’ve marked the end of the bloodbath that began last Thursday.
As I’m wont to remind everyone these days, no one knows for sure...especially over the short term. But I’m willing to bet...and am betting...that the long-term picture remains quite bright and bullish for metals and mining.
|
| Because the basic fundamentals — what Wall Street has shortened to the “debasement trade” — remain firmly in place.
|
| You know what these factors are, so I won’t waste your time reminding you of them here.
I will comment on the take-down in the metals over the past few days, leaning on both cold, hard facts and some conspiracy theories.
The fact: Gold and silver were running too quickly and were bound to trip up.
The conspiracy theory: This was an engineered take-down to rescue the shorts.
|
| Come to think of it... I’ll group the latter as another fact, as the raising of margins by the CME even as prices dropped, and the interesting lack of circuit breakers on the way down, make it patently obvious that the wash-out was an intended result.
|
| And to borrow a phrase from my friend Peter Spina, this “Warsh-out” had nothing to do with President Trump’s decision to nominate Kevin Warsh for Fed chairman. As I posted on X yesterday:
|
| So with the froth blown off of the metals, and some shorts likely rescued, it seems as if we have a much firmer foundation for further gains. This decline will also offer Western retail investors a second bite at the apple, and I wouldn’t be surprised to finally see buying return from that sector.
I was encouraged at how relatively well most of our junior mining companies weathered the storm in recent days, with some even advancing.
|
| In fact, a number of the companies in our Gold Newsletter portfolio — including some of the three exciting new recommendations that I just released in our February issue — are beginning to take off as expected.
|
| Again, I urge you to climb aboard if you’re not already a Gold Newsletter subscriber. Quite frankly, the new picks I just released could pay for your subscription hundreds of times over.
|
| Brien Lundin
Publisher, Gold Newsletter
CEO, the New Orleans Investment Conference
|
| CLICK HERE
To Lock In A Full Year
Of Gold Newsletter
|
.png)
