To us, this correction is an accumulation opportunity. When silver rallies to $25, silver miners will have a ton of ground to cover.
Some are speculating on a more significant decline in gold prices. We could certainly correct to the low $1400s but it will be a short-lived correction not a new bear trend.
Low 1400s is overly optimistic in my opinion. I don't think we'll see below 1434, but if we do, that's just another chance to buy more for cheaper.
- Gold broke out of its 6-year base and rallied with unexpected strength. Gold leads commodities. As gold moves higher (confirming a bullish trend), lagging silver and miners will catch-up ferociously. Most Miners are well below 2016 highs.
- The goldsilver ratio is looking positive for bullish metals and great silver rally
- Money printing is rising. If the Fed is unable to stop their QE, gold will fly
- Gold miners to S&P500 ratio shows gold miners are the cheapest they've ever been. The last time they were nearly this cheap was the year 2000 right before an 11 year bull market in gold
- Gold bottomed in 2015, the dollar topped out in 2016. Now the trends reverse. Bear market in the dollar and bull market in commodities