Despite difficult conditions, some companies have remained active.
Gold, gold stocks, the stock market and commodities appear to be in a similar position today compared to 1976.
Given the scope of the decline in precious metals, some generalist or mainstream money needs to come in for the sector to sustain a rebound.
The bad news is we are already five months into this bottoming process and it can continue for several more months.
The bottom line is the current correction or consolidation is quite healthy for the sector.
Our recent calls for a bottom have been proven wrong as precious metals plunged to another new low.
The rebound is just about here and will pay big rewards to those who are long.
It’s been a tough road for precious metals but the path ahead has strong potential.
Precious metals won’t sustain a rebound until the S&P 500 completes its cyclical bull market.
We see plenty of evidence that augurs for a strong recovery in May.
The latest warning sign on US equities came from the recent issue of Barron’s. A recent survey of big money managers showed extreme bullish sentiment.
After being slaughtered for the majority of the last decade and more, they finally won a victory.
The cyclical bear market in silver is serving its purpose.
Most chartists use daily or weekly charts. Few look at monthly charts. I don’t know of anyone (myself included) who pays any attention to quarterly charts.
The US-dollar tends to be negatively correlated with commodity prices, while this is true in the short-term, it is not always so over the long-term.
Despite all of the bearish sentiment, the panic and bad-mouthing, gold (and silver) has maintained its consolidation.
We are ready to say that now is the time to begin buying and we’ll show you why.
Gold is positioning itself contrary to risk-on assets — it has detached from the stock market and that is a good thing.
The financial crisis was a major catalyst for the gold mining industry. Gold surged against oil and industrial metals. These ratios held their ground and are reaching higher levels once again.
The relationship between gold stocks (while in a secular bull market) and the broad market (while in a secular bear market) is difficult to diagnose and that is what makes it so interesting.
This weekend I had a conversation with a fund manager friend who I admire. He lives in the Asia-pac region and has tremendous knowledge of and insight into markets.
Mark Twain said that history doesn’t repeat itself but it rhymes.
While the precious metals sector has consolidated and struggled to find a bottom, an important development has taken place. First, let's harken back to 2007-2008.
Gold and Silver have been correcting multi-year advances.
It was only a week ago we felt the gold stocks had a great chance of putting in a bottom. Monday supported our thesis but after Tuesday’s action and Bernanke’s jawboning it was apparent that the gold shares were in for a very difficult period.