#Silver leading #Gold seems to be key for #mining #stocks

Silver usually outperforms gold when economic growth and/or inflation rise.

When this is the case, gold mining stocks usually rise too.

There are few exceptions, like the 1997-2003 period.

Maybe it has something to do with the purchase of almost 3500 tons of silver by Warren Buffet’s company Berkshire Hathaway starting in 1997.

First graph is the relation between Gold and Real Interest Rates

Then the Barron’s Gold Mining Index

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Commodities and precious metals (versus US stock markets) make a new 100 YEAR low

Amazing ! This is the only word I can tell today.

Despite increase in commodities prices, the GSCI commodity index cannot fight (till now) the skyrocketing US stock market.

I would like to mention that the biggest wheight in this index is Oil : https://en.wikipedia.org/wiki/S%26P_GSCI

And oil went up recently.

But if we compare this commodity index to the US stock market, this is what we see

First graph vs the DJ index

source : https://blog.gorozen.com/blog/commodities-at-a-100-year-low-valuation

And vs the SP500

Thanks to Willem Middelkoop for the graph

As already many times said, the stock market seems overvalued !

And the best of is : Precious metals vs commodities index ! If Commodities are low let me show you how low are the precious metals (thanks Crescat)

it is clearly a strong buy !

happy Investing

You can follow me on Twitter : https://twitter.com/crofin67?lang=fr

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#gold #silver #Miners 52 weeks low all around, buying opportunity !

As Bob Moriarty (321gold) likes to say : “These are the two best times of the year to buy junior resource stocks”

He is meaning in summer (now) or during the tax loss period end of year.

Today we are facing a lot of 52 weeks lot (despite gold still around 1800 USD not far from long term top (see above)).

You can find at the bottom of that article a bunch of 52w low alerts I got.

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Long term #gold, #silver and #mining co

A short article with several long term graphs.

First one: Gold

Second One : Silver

Third one : Gold / silver ratio. The recent silver run (and gold pullback) brought the ratio back to the 70s

Number 4 : The Barron’s gold Mining index is back up but still did not break the 2011 top.

The last one (and probably the most important to me) : The Barron’s Gold Mining index divided by the gold price.

It shows you how cheap mining companies are !

Happy Investing

Do not hesitate to contact me if you would like some gold stocks ideas (do not forget to read my disclaimer)

You can follow me on Twitter : https://twitter.com/crofin67?lang=fr

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The mother of golden calls on #GOLD

October 2015, I have been yelling around ! BUY gold and several times after (you can read all my english articles here)

It was a perfect end 2015 call on gold

The original in-French article : https://www.crottaz-finance.ch/blog/lor-et-les-mines-cest-parti-mon-goldy/

Translated by google : Here

I found on Twitter several past good calls (in fact bad calls but good for contrariants like me)

Hereafter you will find a great list (nothing against the people or banks who published that of course)

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Sentiments measures bottoming on Gold

There are several sentiment(s) indicators and these one’s are very often calling for movements in advance especially when sentiments are at extreme levels.

For example, when more than 85% of the contributors are bullish on an underlying like the USD, the currency fall during the following period.

Today, we see a very pessimistic level on gold future (silver and so on), which let me think that the metal(s) is (are) not going to fall lower may be strongly rebounding. Only a few sellers left, the main part of them have sold or taken down side positions.

 

DSI (Daily sentiment Index : http://www.trade-futures.com/dsireport.php)

Today (August 15th) the level is very low on GOLD 6% bulls

For the Elliottists :

(Elliott wave : https://www.investopedia.com/articles/technical/111401.asp)

Never seen so many short positions (Managed Money)

We can also add the SP GSCI / SP500 ratio which is at lowest. This shows a entry point on commodities (the index is build like as follow:  https://en.wikipedia.org/wiki/S%26P_GSCI)

Coming back on Gold, GLD SPDR https://en.wikipedia.org/wiki/SPDR_Gold_Shares is showing a buy zone.

Conclusion: gold rebound (and silver) are not so far.

For those who are positive on gold and mines and interested (do your own due diligence) in a stock (developer), I have a stock which can be a very good play for the next rebound

If you would like to contact me to know more about this company, feel free: stock@crottaz-finance.ch

Happy investing

You can follow me on twitter : https://twitter.com/crofin67

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