Gold And Silver Are Headed For New Highs

I’ve  been pounding the table since late January that the third leg of the gold and silver bull market had started in mid-December.  It’s also been quite clear to me that the western Central Banks had lost their ability to push the price of gold/silver down.  Now the best they can hope for is to maintain a “controlled retreat” – i.e.  do what they can to limited rate at which the metals move higher.  That’s why we get these “zip line” price plunge formations followed by another “stair step” higher.

But don’t take it from me.  Andy Hecht, a famed oil trader, had this to say:

“I have been trading precious metals since 1981, and I have never seen an environment where both the technical and fundamental states of the metals have lined up as they have in 2016. I believe that we may be in the early days of a rally that will take gold, silver, platinum and palladium to new all-time highs.”

I need to point out that earlier this year Hecht was slow to accept the move being made by gold and silver and had even issued some bearish remarks at one point.  You can read his full commentary on the metals here:  Gold/Silver Are The Place To Be. (He has the same graphs I was showing 6 weeks ago).

The silver mining stock I featured in the debut issue of the Mining Stock Journal is up over 7% this morning.  It handily beat earnings.  This is the only large-cap miner I have presented.  It’s nearly doubled since early March and the Company pays a monthly dividend.  The call options I recommended are up 260%.   Another stock I recommended in mid-April popped 60% earlier this week. I’ll note that Casey Research had recently “poo-poo’d” this stock. My Mining Stock Journal focuses “off the beaten path” ideas that are higher risk/very high return juniors.   You can subscribe to the MSJ here:  Mining Stock Journal.   The subscription price includes all the back-issues (for now).

13 thoughts on “Gold And Silver Are Headed For New Highs

  1. Dave, I would be interested to hear your thoughts on Platinum. Generally speaking it pays to buy it when it is cheaper than gold. However, I hesitate b/c of its links to the economy.
    What would you buy here if given the choice of Platinum or gold?

    All the best…Mike

    1. I don’t have thoughts on platinum. It’s a rare industrial metal and that’s where it derives its value. It’s not a monetary metal even thought some promote it as a tertiary monetary metal. I’m not aware of it ever being incorporated into any country’s/civilization’s monetary system.

  2. Good article by Hecht minus any mention of cenral bank/government manipulation. He says under a heading of “Currencies do not Matter”…
    “Since the dollar is the reserve currency of the world, it tends to trade inversely with the prices of precious metals. We saw that price action throughout 2014 and 2015 but in 2016 the shiny metals have divorced from the historical price relationship.”.
    That is liklely becasue:
    ” It’s also been quite clear to me that the western Central Banks had lost their ability to push the price of gold/silver down. Now the best they can hope for is to maintain a “controlled retreat” – i.e. do what they can to limited rate at which the metals move higher. That’s why we get these “zip line” price plunge formations followed by another “stair step” higher.”

    I’ve read anaylses by people so knowledgeable and smart it makes my head spin. But years ago I think it was Murphy or Powell that stated than any article or analysis relating to the future price of G or S [other PM’s too] that doesn’t mention manipulation was at best incomplete.

  3. I’m a new subscriber to the Mining Stock Journal and all I can say is WOW!
    Anyone who’s considering subbing, I would highly recommend you do so.
    Initially, I was hesitant because I don’t much $$ to invest. But, I’ve made enough to cover the cost of the sub and then some.
    The companies he’s presented that I’m following – one is up over 25% at close and up another 6% after market. Another one is up 15% since my entry.
    Both stocks are priced well under $5 as are most of the companies he “sniffs” out. The legit Jr mining companies appear to be coming back with a vengeance and Dave has done the hard part in finding them.

  4. Off topic Dave sorry but my take on “Zero interest” JMO but have to say metaphorically so to speak.
    1. I can sell someone else’s property with borrowed money.
    2.I can insure someone else’s property with borrowed money.
    3. I can borrow that money and get some one else to pay me to borrow their
    money (zero/negative interest rates’)
    So how do you make money in this market? they ask? well it’s very simple that “someone else” is the taxpayer…that is to say, any person who is not part of the 1% but keep licking corporate/political butt out there and telling yourself you understand exactly whats’ happening& when we are all living in a poverty driven gulag like most of human history. Tell yourself you had nothing to do with it’ I know that’s what i’m gonna do.

  5. I am glad I signed up for the MSJ since the debut issue. At first I was wary of getting into gold given the hammering it took for so many years but somehow fought off my reluctance and jumped in. The MSJ has been a virtual gold mine, providing thoroughly researched information and ideas. My feeling is that since the markets have detached from reality, gold is going to go up quite a bit due to investors viewing it as a safe haven and better store of value. If we get even a third of the run that happened from the early 2000s to 2010/11, I think these junior miners will go up manifold in value.

  6. Today’s (Friday Aug 12) fraudulent paper chart for both gold & silver is a hilarious looking trapezoid (an upside down one, some might say), isn’t it?

    I had mostly stopped paying attention to the paper prices anymore, while keeping track of Hitlery corruption stories. But I had to burst out in sarcastic laughter after seeing 2 charts like that.

  7. I like the article Antonius. Interesting read. I’ve heard some argue that the current system will crash and that’s why we’re seeing large purchases of gold by governments around the world.

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