Silver is underperforming Gold. The corrections in Platinum and Palladium are burrowing deeper beneath our breakout levels. And the Gold Miners ETF $GDX is printing fresh lows versus the broader market.
After spending a week with clients at our Portfolio Accelerator and fielding countless reader emails, I completely agree!
Since gold and silver prices are getting a bit wild, I decided to dive straight into the Gold Rush mailbag today to start a healthy discussion about what might happen next…
What happened to gold/silver? Is the rally over?
-Parry
No, the rally isn't over.
Gold is consolidating below a critical extension level following a breakout to new all-time highs. And Silver is trading just off fresh decade-highs.
In many ways, it’s just getting started.
I can’t hold a bearish or neutral bias for precious metals while Silver trades above the 2020 highs of roughly 30.
Investors are dropping Gold and Silver like they’re hot.
But don’t let the sellers push you toward the exit.
It might look ugly, but a corrective period following Gold’s vertical rally to our initial target sounds about right. Plus, three of our current long positions – Harmony $HMY, Wheaton $WPM, and Kinross $KGC – posted new 52-week highs Thursday.
I expect the new highs list to expand as Gold and Silver work through overhead supply in the coming months.
Instead of sweating today’s selling pressure, I’m placing orders to buy the following two mining stocks on a breakout…
It’s easy to overlook while gold shines and silver rips. But during the last commodity supercycle, platinum traded at a premium to the famous shiny yellow rock (and still does regarding retail jewelry).