Gold Miners don't need Crypto Wallets

JC Parets
November 14, 2021

The worst investment on earth over the past 15 months could finally be starting to wake up.

Think about it, you could have literally bought anything last summer and made money. A lot of money, actually. Except precious metals.

It's been a sucker's trade for a long time.

That's one thing that's made this that much more attractive to me. The angry gold bugs have finally shut up and admitted defeat.

And historically that's precisely when things start to change:

You don't need a Crypto Wallet to be long Gold Mining Stocks.

This is old school investing baby!

If $GDX is above 31, we want to stay long. 43 is next:

If B2Gold $BTG is above those 2012 highs, this is one of my favorite ways to play the Gold comeback:

Imagine being long gold this whole time while everyone else was making all that money?

That sounds so depressing.

It's hard for humans, both the ones who held Gold that whole time, and the ones who watched them and laughed all along, to enter into one of the most painful investments on earth.

But there's a time and a place for everything.

I used to be a Gold Bug over a decade ago. True story.

And it was a good time for a while. And then new data came in and I changed my mind.

Most people aren't able to do that.

So if you are, and only let price guide you, then kudos to you.

That's a huge advantage over the stubborn ones. It's a great arb.

But it's not just gold, we're seeing strength in many assets all over the world.

Look at the Europe ETF (priced in local currency):

I probably talk and write more about The Global Dow than anyone on the globe.

There's really not a lot of chatter out there about this index, but I've always found it so valuable.

If this is a fresh breakout, lookout!

Meanwhile, the laggards are turning into leaders.

These two indexes have been a great heads up of market weakness for a long time. When they're struggling, there's an underlying problem in the market. When they've been doing well, the party is on!

Look what's happening in Small-caps and Transports:

Industrials are breaking out to new All-time highs:

The stairstep continues in Technology.

Do charts get cleaner than this? Seriously.

One missing piece to this whole thing is Emerging Markets.

And yes, I know there's a lot of China in $EEM and it's more about their shitty Internet stocks than a commodities situation.

BUT, take a look at this chart:

If Freeport goes, are you going to bet against Emerging Markets? Even with China?

I'm not.

And finally in Crypto, if these video game coins don't have your attention, then I think you're crazy.

They're buying digital real estate and this stuff is going for tons of cash. Check out Decentraland $MANA. What's happening in there is wild.

But of the video game names, I still think Axie Infinity offers the best risk vs reward proposition:

If $AXSUSD is above 140, I see no reason not to stay long.

Looks great. We want to be adding to positions if it's above 160.

There's a lot going on right now.

Plenty of opportunities.

We review the week's charts in our Saturday Morning Chartoons.

Click here for this week's Chartbook.

Have any questions?

Give us a buzz: 323-421-7910

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We get going at 6PM ET 11/16/21.

Looking forward to it!

JC

 

 

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