Gold and Silver (June 14, 2019)

Gold and silver have been ranged bound for so long, precious metals have become a rather boring sector to follow in recent years… And even though the gold/silver ratio is skewed like crazy right now, my own personal belief is that whenever gold is close to re-testing $1,350/oz, I need to start paying a lot more attention…

Because, you just never freekin know… when…

Gold has a mind of its own, and whenever it decides to pop (for whatever the reason), it will do so on its own accord (screw TA, FA, analysts’ predictions, etc.), and chances are sky high that when it does finally decide to BRIM, silver will also tag along for the ride…

Don’t forget — When gold and gold mining stocks shot to the moon in early 2016 through summer 2016, ain’t nobody was calling for it… Fed rate hikes were just starting to happen and everyone and their mama was declaring gold to hit $1,000/oz… next…

From MarketWatch.

So many people nowadays try and act like the early 2016 gold bull run was “inevitable” and “totally expected”… I say bs… I lived through it, I remember how hated gold and silver were back then…

Further, when  it comes down to it, I really don’t understand the whole argument how silver is an “industrial metal”… In a sideways/down market, sure I get it, or better yet, call silver a “hybrid metal”… But whenever push comes to shove and gold decides to scream higher and enter its next bull market (i.e., 2016), silver will get the memo (best believe that) irregardless of what other “base metals” are doing… and silver will most definitely outperform gold to the upside.

Speaking of that gold/silver ratio… It’s at about ~90 now… LOL!

Anyway, right now, I’m really liking things from a risk vs. reward perspective for gold mining stocks. At ~$1,340/oz, many producers will be raking in good $$$, and because many of these stocks haven’t moved much (if at all), there’s good upside since a re-rating hasn’t taken place (yet).

As it pertains to silver mining stocks, they’ve certainly moved up a bit, and to me, the risk vs. reward is far less appealing (so far) b/c at sub $15/oz, there’s still not much profit to be had for a vast majority of silver miners out there… Personally, I would need to see silver somewhere close to $20/oz before I get most intrigued with owning a lot of silver miners…

Right now, it feels like a buyer’s market… but I wouldn’t get too jacked up just yet… Basically, the entire world is waiting for gold to break $1,400/oz before the masses will even fathom the thought of jumping into the fray… And given gold’s track record and recent history of disappointing, there’s still that MASSIVE resistance at $1,350/oz range to consider (that needs to be conquered)… which likely won’t be an easy task.

In any case, as a speculator, I’m just trying to look for opportunities; it doesn’t cost anything to just sit tight and watch carefully, observing the markets…

Usually, the summer months are boring and uneventful for precious metals…

 

This year is still to be determined… but right now, things are perking up, so I’m watching most closely.

 

Happy Hunting!

 

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FI FighterRyan McGregor Recent comment authors
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Ryan McGregor

Gold will NEVER break above $1380! It is a stupid lump of shit.

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