Gold Stocks: A Staircase To Heaven? Stewart Thomson
July 21, 2020
Gold looks superb, silver looks better, and the miners look best of all.
These are the main facts for investors to keep in mind at this point in “gold bull era” time.
Please click here now. Double-click to enlarge this “breakout over $1800” gold chart.
Next, please click here now. Double-click to enlarge yet another breakout chart (silver). Silver looks ready to surge towards my $26 target price zone.
Please click here now. Double-click to enlarge this SIL silver stocks ETF chart. A huge base pattern is in play, with a “neckline” at about $50.
A breakout above that neckline targets the all-time highs in the $85 zone, and I expect many individual miners to rise hundreds of percent as the SIL ETF rises to my target zone.
Some junior miners should rise thousands of percent as that happens.
In 2020, the miners are the best performing asset class in the world. Just in the past month, gold is up about 10%, silver is up about 20%, and mining stock ETFs are up about 30%.
Many individual miners are up 50%, 100%, and more! In my professional opinion, this market resembles the 2000-2004 market to a degree, but from a fear trade perspective, it is most similar to the late 1960s and 1970s market, when the miners began a decade-long run higher.
The rise of gold-oriented China’s citizens as leaders of a new economic empire adds weight to my prediction that the miners have started a 200year “gold bull era”.
Please click here now. Gold-themed China is just too big for the debt-themed American government to handle. I’m predicting that Chinese pay apps like Alibaba’s Ant will soon dwarf US banks with assets and power.
Meantime, the failed US government can’t seem to win a war if its life depended on it. Whether it’s Vietnam, Afghanistan, Iraq, or Corona, failure is the operative word.
These horrifying wars have been fought with ever-more debt rather than with prudent savings.
With no bomb shelters, American city dwellers are sitting ducks in a war. Sadly, they are told that using the Fed’s giant electronic fiat photocopier to buy zombie government and corporate bonds with printed fiat is their “ticket to ride”.
That’s utterly ridiculous. Citizens need to forget about government madmen, and make themselves function as their own government, with a focus on savings and crisis preparation.
In a nutshell, both the fear trade and the love trade for gold are firing on all cylinders. Rather than worry about a market “top”, gold bugs can smile and buy any pullback with great confidence.
It’s a fabulous environment for both short-term traders and long-term investors.
On that note, please click here now. Double-click to enlarge this beautiful GDX chart.
There are magnificent floors of support in play at $38 and $32, and there is a “staircase” of higher minor trend highs and lows.
Are gold and silver stocks climbing a staircase to financial heaven? I think so! The uptrend channel is solid. Miners are raising capital with ease, and unlike the government, they are using it prudently.
Please click here now. Double-click to enlarge. Note the gargantuan volume on this US stock market chart, as the Dow broke out of a huge base pattern in 1982.
Next, please click here now. Double-click to enlarge this weekly GOAU ETF chart. Note the volume!
I believe the current breakout in the miners is similar to the US stock market breakout of 1982, but what is happening now is on a much bigger scale. This is not just the start of a bull market for the miners.
It’s the start of a bull era, and it’s going to last for hundreds of years!
July 21st, 2020
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is a retired Merrill Lynch broker. Stewart writes the Graceland
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