Positive Signs
While it is a bit early to sound the all clear on the resumption of the precious metals bull market, the positive signs that the bottom is in, are starting to mount. Yesterday, based on the action and chart of Hecla, which is often a leader in terms of being ahead of moves for the metals and silver in particular, I said to take a position as the liklihood of further downside, for that specific stock, was minimal. That was clearly the correct call.
Today, we are seeing very positive action in both gold and silver, given that equities are considerably weak. One day doesn’t make a trend, but it has been the missing piece that many of us have been waiting for. The rollover of equities, while gold and silver and the miners, breakout to the upside, will be the final confirmation for the next leg of the precious metals, major bull market.
As I have noted recently in posts and comments, it is likely that we see backing and filling for the rest of November, as that is the usual seasonal pattern, particularly for silver.
However, nothing about usual patterns, seems to describe what we have experienced in markets, this year. Therefore, any surprises from here, are likely to be to the upside, as far as the metals and miners, are concerned.