The other day I pointed out that the tell of the gold market appeared to be in the interplay of the individual stocks and their moving averages (50/200DMA). It turned out to be prescient. Also the royalties were telling a story, they were signaling all was not well, especially of course SLW. Sure one could blame the prebought deal exclusively for its trouble, but the price action to me was signaling worse troubles.
Let’s take a look at the royalties and GLD
Note I included Osisko (my main core position). Its not yet a darling and it hasn’t quite imploded, but it could be a top formation. I have pared my position back down to my non-tradable core. Again, I place the GLD next to the royalties for a reason as the royalties strip out the operational production risk and trade chiefly off the gold price. Obviously its sending a message…phase III maybe!
Now let’s look at the high cost behemoths, how they doing and what are they saying? I think NEM was a giant head fake for those perma turnaround gold bugs
Finally the silver majors are making spectacular moves off their highs