Loading ...Mid tier silver miners are leading the way…
The last few days have seen dramatic moves up in many mid-tier silver miners. In contrast, the gold miners have been lagging. This is a good sign and is the natural order in a true trending bull IMO.
EXK is a real standout as it has screamed higher over the last few days (keep in mind that it can drop dramatically too). AG is also looking good–I expect it to finally break a 10 year downtrend line (iirc the breakout will come above $14), and it should start moonward after that. AXU is another one that has done well, but hasn’t quite exploded yet.
Notwithstanding gold miner under-performance, the HUI is encountering some resistance today at the 50 dma. We’ve also left a gap behind. Not entirely unexpected to have some selling here. But still, would like to see them close strong today. One gold miner I own that is still stuck in first gear is KGC. It has definitely given back some of its relative strength during this correction over the last 4 months, and I would like to see it begin to outperform again. It is on the cusp of dramatically outperforming once again (it is currently backtesting a huge H&S top on the the $hui:kgc ratio chart).
I have a different take. Actually I do not see this as the natural order of a bull market. It is much too early in a typical bull for silver to take the lead as it has. There is no reason silver “should” be leading IAW past model behavior. We have not even had a POR yet.
So this is what I think is going on. I think the silver suppression scheme is beginning to unravel right before out eyes. That’s right the scam that seemed to be able to go on forever is actually ending. What we may be witnessing is the early stages of a powerful short squeeze.
First Majestic is going to be fun to watch with the 23% of float held short. I can hear the squeals already.
No silver has no business to be the lead dog this early on… something els is brewing
See my post above about Mike Maloney’s gold call. If this bull ends in early to mid 2023 that is not a whole lot of time for consolidative action. No, it would strongly suggest we are embarking on the bubble phase that will culminate as it always does in a huge 6 month or less spike at the very end. In that light, I don’t think it is outrageous to suggest that silver will crush gold over the next 2 to 2.5 years.
It absolutely is going to crush gold’s performance. Once the rats start fleeing the short side its going to be a Saturn 5 launch
Plunger I recently went to the Huntsville Space Center. they had a great deal on the Saturn 5 story -way cool. It was so good I plan to go back again soon.
Also keep in mind silver hasn’t even reached its 2012 peak so its got a lot of catching up to do.
I’m sure you have seen the 50 year cup and handle formation. The handle has been formed. All that remains is a break of $50. The projection would be to $94.
No idea the price level or the timeline, signals will be in the ratios. My early targets are GSR under 40, Dow/Gold under 5. Those could be pre-mature signals to take action (could go to 20 and 1) but they will likely not be late signals.
I agree with Plunger… Silver is the drunk frat boy carrying a case of beer arriving to the party late like 1 am. But its a hell of a party for the last couple of hours.
1979 silver doubled in 6 or so months,(80%) of silvers gains made in last 10% of its run. 2011 spiked last 6 or so months and that was just the half way point of this bull. So I am going to grab some popcorn and watch the crimex unravel if that’s whats brewing..