In this article, we discuss the precious metals space. More fireworks are underway, much higher prices are underway!
Which gold investing vehicle exactly to choose? Most leverage comes from high quality gold and silver miners. We featured top gold stocks as well as top silver stocks several months ago, and they are really still actual. B
The junior gold miners index (GDXJ) to the price of gold is a ratio that tells something about risk sentiment in the precious metals market. This ratio rises if investors are willing to take (lots of) risk.
This ratio is in a falling channel since 2011. This makes sense of course as that’s when the precious metals bear market started.
However, a spectacular breakout is now in the making, after an 8-year bear market!
The breakout started a couple of months ago, but a small push higher is needed to confirm it.
The silver miners to the S&P 500 is a ratio that we follow closely.
This ratio broke out a few months ago. Similar to the one above just a little bit of work is needed to confirm this breakout. A small push higher in silver miners is needed.
We especially like the double bottom against Jan 2016. This is very powerful (read: bullish) when combined with our gold and silver price forecasts as well as gold and silver miner trends. What about inflation expectations?
The TIP ETF as an inflation indicator is consolidating after it dipped in January of 2016 and November 2018! At the time of writing inflation expectations are about to break out to the upside after a long series of higher lows. This is a secondary indicator underpinning continued strength in gold, silver and precious metals miners!(