On Fire

Last week I told you that gold and silver were about to lift off. That’s happening at this very moment, for the two reasons I gave you in our last issue…

Dear Fellow Investor,

When I wrote you precisely one week ago, gold was trading lower. I urged you not to worry. In fact, my headline was “Get ready — the best is yet to come.”

That big move is happening right now.

To recap, I had two basic reasons for expecting a near-term rally in both gold and silver, one fundamental and one technical:

From a fundamental standpoint, some of the pandemic stimulus programs were set to end at the end of the month. The announcement of their extensions and new programs to be dreamed up would give the metals a burst of adrenaline.

Right now, despite the likelihood that Congressional negotiations will extend beyond the end of the month, the market is anticipating another big splurge of stimulus.

From a technical standpoint, gold’s successful demolition of the key technical resistance at $1,785 and the psychological big number of $1,800 has attracted an avalanche of technically-oriented traders and generalist investors.

Remember that the gold and silver markets are relatively tiny, and this new source of buying represents a veritable bottomless ocean of liquidity. That’s why we’re seeing such dramatic moves in the metals right now.

Consider that gold leaped about $23 higher yesterday (1.26%), while silver absolutely catapulted $1.38 (6.92%) taking out not only the important $20 resistance but also smashing through $21 while it was at it.

I wouldn’t have blamed anyone for expecting a consolidation of those tremendous gains today. But it didn’t happen. As I write, spot gold’s up another $25 to $1,867, while silver is rocketing yet again with a $1.55 (7.27%) gain to $22.87.

It’s a frenzy.

Silver’s big gains are partly because investors new to the sector are looking for unrealized value, and the gold:silver ratio at still-historically-high levels points to the white metal as the better prospect right now.

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The Mining Stocks Continue To Offer Leverage

It’s been hard to keep up with silver, but the junior mining stocks we focus on in Gold Newsletter are still managing to outperform the metal.

One reason is because we’ve gotten our readers in early, before the crowd, in some of the hottest new deals.

Another reason is that many of these companies are delivering extraordinary drill results, just as we were expecting when we first recommended them.

I’ve already told you about Vizsla Resources (VZLA.V), which is up 570% since we recommended it in April.

Well, here’s another one: Blackrock Gold (BRC.V), which is actually more of a silver play, doubled in price on Monday after releasing the first batch of drill results from its project in Nevada.

It’s up three-and-a-half times in price from our entry price.

And the list goes one. My point is, if you’re not involved in this space, you need to seriously consider doing so asap.

One great way (and I think it’s the best), is to subscribe to Gold Newsletter or our Gold Newsletter Alert. You can do that by CLICKING HERE.

You’ll want to subscribe soon, if you haven’t already, because I have five new recommendations slated for our August issue, being published next week. One of these new recommendations is a new silver play that I predict will take the market by storm.

Regardless of whether you subscribe to Gold Newsletter, I urge you to dedicate some time and money toward researching the junior mining sector, subscribing to some of the top newsletters and attending the best conferences (especially our New Orleans Investment Conference, for which we’ll have some more important news soon).

I expect gold and silver to remain volatile, and of course it wouldn’t be surprising to see some consolidation after the recent red-hot moves.

But the long-term prospects remain bright, and I’m confident that this bull run will last years and handily break all the previous price highs for gold and silver.

So get involved, and enjoy the ride.

All the best,

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