In my opinion, we are carving out a major low in the mining stocks currently.  If you can buy a miner at or below its 100 WMA, I think you will look back in a few months and wish you would have loaded the boat.  As an example, I own a substantial position in AXU, which is currently approaching its 100 WMA at $2.30 (see below chart).  In my mind, there is absolutely nothing long term bearish about AXU’s chart.  Could it dip below $2.30 for a week or two, and perhaps substantially (by 10-20%)?  Yes.  But in my opinion, those levels will be a gift.  I already have a full position, but I may try to scrape up some additional funds to purchase more if it dips below $2.30.

Gold, which many are now saying is in a bear market, has not even hit its rising 100 WMA, which should be above $1725 this week.  After the massive run up between 2018 and 2020, a touch of that MA would be expected in my opinion and would be totally normal.  Again, I think buying at or below that MA will represent an absolute gift.  There is also a chance that we don’t tag that MA and that last week represented the intermediate cycle low.  Either way, weakness should be bought.

As always, do your own due diligence.  Mining stock are extremely volatile.  To make matters worse, the adage that they take the stairs up but the elevator down could not be more apt for this sector.  If you can’t tolerate at least a 10% drawdown, do not ever buy a mining stock IMO because it is ALWAYS darkest before the dawn (i.e., bull runs are invariably preceded by massive shakeouts).  None of the above is investment advice, just what I believe.