Whenever In Doubt, Zoom Out - Gold & Silver
I don't like giving a high weighting to year-to-date data, so let's zoom out a bit. Here is the 1-year performance of this group. Notice the difference between metals and the S&P500:
You can see Silver didn't get the memo either.
I'd also like to point out that this data is skewed a bit because 12 months ago just so happens to be the beginning of a monster rally in the whole precious metals space.
So let's zoom out further and go back to the January 20th 2016 stock market low. I think that's a fair starting point because it was when the most amount of stocks bottomed out after the 2015 bear market, which coincided with the start of the rally in precious metals.
Also, look at the tremendous outperformance from $GDX and the fact that the Junior Miners basically kept up. which I think is impressive.
For me, the relative strength speaks for itself. I think we stick with what's working. If the laggards start to outperform that's probably great for the whole metals space. We outlined all the stocks we like in the sector here (Premium).
What do you think?
Feel free to share your thoughts with us!
JC