If gold is cheap vs US equities...
Then miners are even cheaper vs US equities.
Beautiful +9 year base for miners vs gold exemplifies the risk vs reward profile of miners.
Don't say I didn't show you this!
My 5-7 year outlook. Amazing fundamental and technical picture for precious metals and for the gold & silver mining companies. They are very undervalued relative to the underlying metals they mine and the fundamental picture gets better and better. They're growing cash flows and making very large margins of over 35% on average. Inflation is here and the Federal...
HUI is outpacing Gold, one of my favorite indicators of late. Today's spike through the 30Wk SMA is significant, as you will notice it is similarly launching us south of the yellow volume-heavy zone and breaks the .5 retracement from August.
Transitioning from this yellow 'chop zone' into the green summertime 'Peak zone' to a 'double bottom' coinciding with that...
My favorite ratio for cutting through the noise is an LT view of Gold/Oz($) : HUI (the Gold Bugs Index). Generally when it rises we gold bugs suffer because the price isn't reflecting our buying habits. That's why I'm looking for the next bottom on this chart sometime in July that might coincide with this broadening wedge... A date that keeps recurring for me is...
Quarterly chart for $hui looks great... specially if it can close Q1 back in arc with a March close above 290.
Wick would simply of touched breakout line and be remembered as noise from smaller time frames.
Target range is 510-570 before 2023.
Lots of stuff going on here. First lead my arc's "reverse symmetry guidance. Angle of entry gives reciprocal energy on the way out. Helps establish target AND time to reach! Win-Win. Then add pivot lines (previous resistance turned support). Last piece of evidence, gold old fashion Stoch. Strong gains occur from bottom transition to top range. Enjoy!
In the next next 2 years gold and HUI will rise significantly while DJI will fall by further 50%.
HUI:Gold ratio which is still quite low (0,16) will rise to about 0,45.
Enter mines now and exit after HUI:Gold exceeds 0,4.
Long Gold stocks HUI and short Financial XLF ratio close to 15 level breakout. Above and we are off to the races. Note the post 2008 crisis long term outperformance.
