Ludwig_Von_Mises

Time to Accumulate Gold and Silver Miners on Metals Pullback

FX_IDC:XAUUSD   Gold Spot / U.S. Dollar
It is always important to keep one’s mind open and to consider all possibilities.

At this point I am expecting a pullback correction in Gold , between $1416 and $1434. If this pullback comes, this will be an opportunity to accumulate undervalued junior miners who will play “catch-up” to the large cap miners. Additionally, with the gold-silver ratio finally breaking lower, silver looks poised to outperform on this next leg up. I am not actively shorting the metals, merely patiently waiting for this opportunity to accumulate even more shares in my list of miners.

However, given the current state of affairs around the world, it is entirely possible this pullback never comes and that we move higher from here. I am hedged against that possibility by being presently invested and continuously adding to my investments in junior & small cap miners. In my opinion, if this scenario plays out where gold does not correct first, it will ultimately not be ideal for gold long-term and will likely result in a painful crash in the metals.
Comment: As expected, gold has sold off, breaking below 1490. A daily close below 1484 confirms the bear trend.
Trade active: Gold & Silver's price action since August, as well as the miners's price action, have been exactly what we want to see for a bullish scenario for metals.

We've had a healthy correction, which is what we want in a sustainable bull market.
As I predicted, we've been unable to breach 1440 and the price action has fallen within what we expected.

I do think there could be 1 more washout wave of selling, quickly touching 1434ish, before quickly being bought and sent higher.

As I have been repeatedly saying, gold has broken out of a 6-year base. This is the retest / correction of that breakout. This has been the time to be buying mining stocks.

The metals are bullish. Sentiment and enthusiasm for gold remains relatively quiet, which is what we want. We don't want too much noise in the metals market.
Comment: the odds of a strong metals rally are the highest they've been since January 2016.
In the next 3-4 months we're going to see rising metals prices and miners are going to perform well.
Comment: I hope you all have been accumulating during this correction. A big move is coming.
Comment: correction is close to over. higher prices are coming. $1711-$1834 in the next 6 months