Loading ...Some charts on EW of Avi
Hi, I picked up some charts of Avi Gilburt about his Abx/GLD counts, just to see his (bullish) possibilities about gold and gold stocks.
It seems on GLD , he has a quite bullish count, on ABX (GDX) on the other hand he only sees it returning to 2016 high’s when GLD should be at new highs again .
Any opinion?
Maybe the author of the following article has a point, that you should only own mining equities if you buy these at a bottom and play for a relief rally, nothing more:
https://moneyweek.com/why-gold-is-a-better-bet-than-gold-miners/
Last I saw in avi when the wave 3 kicks in he saw gdx going to 69 at least
“Why gold is better than gold miners”
D. Frisby chart 1
Exactly. The miners should be 50% higher to match the Aug 2016 high in gold. Right now the miners are priced the same as $650 gold from 2006 and 2007. This is not bull market action IMO.
D. Frisby chart 2
HUI:GOLD ratio peaked in 2003 at 0.625 and its been trending down from there to a low of 0.100 in Dec 2015. Truth be told its not much better now. As the price of gold rises the miners struggle just to stay even. This is not bull market action.
Frisby is right. It has been better to buy the metal. The question to ask though: “Is past performance indicative of tomorrow’s market?” Don’t know, but I have to admit it doesn’t look promising.