The fun side of the arc in the junior miners is currently playing out. At the moment, we reside at the edge of the arc, which presents a very low risk high reward entry. Completion of the arc would indicate a gain of around 250% + overshoot, in an 18 months timeframe.
Look at gold's swing upwards. Looming are the infrastructure bill, reconciliation bill, debt ceiling and solvency, and the midterm elections. Despite all the rhetoric, the Fed's true direction is revealed by their opening a standing repo facility just this month to backstop moneymarket funds. The IMF also just injected $650 billion in SDR, which is far from enough. The problem is world-wide massive debt. The media ignores how governments have been bankrupt since 2008 and the entire world economy simultaneously shut down for over a year. Sure, there was some recovery, but that is not to last. Consumer sentiment is at an all time low as wages fall, unemployment benefits end, and housing moratoriums end. Prices are too high and consumers are fearing a downturn. To avoid a deflationary death spiral, Congress has to stimulate more. Gold miners will be producing the one asset that will still have value in a few years when currencies collapse. They are also making high profits and are way undervalued.