Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stock Market Trend Forecast 2024 - 15th June 24
Gold Price Consolidating at High - 15th June 24
NVIDIA Stock Market: Price Prediction for the Future - 15th June 24
When Will the Boom/ Bust Rollercoaster End? - 15th June 24
Stock Market Trouble Lies Ahead. Are You Ready For It? - 15th June 24
Stock Market Investor Sentiment - 8th June 24
S&P 494 Stocks Then & Now - 8th June 24
As Stocks Bears Begin To Hibernate, It's Now Time To Worry About A Bear Market - 8th June 24
Gold, Silver and Crypto | How Charts Look Before US Dollar Meltdown - 8th June 24
Gold & Silver Get Slammed on Positive Economic Reports - 8th June 24
Gold Summer Doldrums - 8th June 24
S&P USD Correction - 7th June 24
Israel's Smoke and Mirrors Fake War on Gaza - 7th June 24
US Banking Crisis 2024 That No One Is Paying Attention To - 7th June 24
The Fed Leads and the Market Follows? It's a Big Fat MYTH - 7th June 24
How Much Gold Is There In the World? - 7th June 24
Is There a Financial Crisis Bubbling Under the Surface? - 7th June 24
Bitcoin Trend Forecast, Crypto's Exit Strategy - 31st May 24
Zimbabwe Officials Already Looking to Inflate New Gold-Backed Currency - 31st May 24
India Silver Imports Have Already Topped 2023 Total - 31st May 24
Gold Has Done Its Job – Isn’t That Enough? - 31st May 24
Gold Stocks Catching Up - 31st May 24
Time to take the RED Pill - 28th May 24
US Economy Slowing Slipping into Recession, But Not There Yet - 28th May 24
Gold vs. Silver – Very Important Medium-term Signal - 28th May 24
Is Gold Price Heading to $2,275 - 2,280? - 28th May 24
Stocks Bull Market Smoking Gun - 25th May 24
Congress Moves against Totalitarian Central Bank Digital Currency Schemes - 25th May 24
Government Tinkering With Prices Is Like Hiding All of the Street Signs - 25th May 24
Gold Mid Tier Mining Stocks Fundamentals - 25th May 24
Why US Interest Rates are a Nothing Burger - 24th May 24
Big Banks Are Pressuring The Fed To Losen Protection For Depositors - 24th May 24
Another Bank Failure: How to Tell if Your Bank is At Risk - 24th May 24
AI Stocks Portfolio and Tesla - 23rd May 24
All That Glitters Isn't Gold: Silver Has Outperformed Gold During This Gold Bull Run - 23rd May 24
Gold and Silver Expose Stock Market’s Phony Gains - 23rd May 24
S&P 500 Cyclical Relative Performance: Stocks Nearing Fully Valued - 23rd May 24
Nvidia NVDA Stock Earnings Rumble After Hours - 22nd May 24
Stock Market Trend Forecasts for 2024 and 2025 - 21st May 24
Silver Price Forecast: Trumpeting the Jubilee | Sovereign Debt Defaults - 21st May 24
Bitcoin Bull Market Bubble MANIA Rug Pulls 2024! - 19th May 24
Important Economic And Geopolitical Questions And Their Answers! - 19th May 24
Pakistan UN Ambassador Grows Some Balls Accuses Israel of Being Like Nazi Germany - 19th May 24
Could We See $27,000 Gold? - 19th May 24
Gold Mining Stocks Fundamentals - 19th May 24
The Gold and Silver Ship Will Set Sail! - 19th May 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold Trend Change? Price Breaks Above 200 Day Moving Average

Commodities / Gold and Silver 2015 Jan 15, 2015 - 09:19 PM GMT

By: Jeb_Handwerger

Commodities

For weeks I have been predicting that precious metals and the junior gold miners would bottom and outperform in January.  Now gold is breathtakingly breaking above the key 200 day moving average and breaking four month highs as the World looks to gold as a safe haven.  The intermediate to long term trend may be turning positive and unfortunately the amateur investor has already panicked out or may be covering their shorts.


This breakout in gold could end the lower high pattern or downtrend.  Sentiment is changing from negative to positive.  Already for weeks, I highlighted the positive momentum in the junior gold miners despite the new low in December.  This divergence usually signals an interim bottom and turning point.  A few weeks ago precious metals and the shares were hitting new lows.  The amateur investor panicked out.  I told my subscribers to hang on and buy more at the bottom.  Now the Junior Gold Miners are up over 14% since the beginning of the year outperforming the S&P500 and US dollar. 

Despite oil and copper collapsing along with equities, precious metals and mining stocks appear to be bottoming and showing great relative strength.  Right now, gold as a safe haven may be where the action is greatest.  The US dollar may peak as investors realize that the US economy is still far from recovered.

 The oil and copper collapse is giving a loud shout to investors that the global economy is nowhere near recovery and looks more like the 2008 Financial Armageddon.  One of the few things that can maintain its purchasing power in this sort of market is gold.  Believe it or not another yellow metal which has held up well despite the 50% correction in oil is uranium. 

I told my subscribers at the end of 2014 that smart investors should be defensive against the overbought equities with inverse S&P500 etf’s such as Proshares Short S&P 500 (SH) or a short financial fund (SEF) and go long gold (GLD) and junior gold miners (GDXJ) in this sort of chaotic environment.  The banks are sitting on major energy losses, while the S&P500 is made up largely of energy stocks and companies who profit off of emerging economies.  It is way overbought and we could witness a powerful crash in equities that mirror the oil crash.

I believe mining assets with real potential could come back into favor.  I am accumulating hoping that within the next decade we could see a major run higher in this sector.  Eventually, the trillions of debt will be paid back with devalued US dollars.    Rising interest rates and inflation could pick up in 2015 especially in the US benefitting our beaten down wealth in the earth sector.

Real gold mining assets in stable jurisdictions will go up in value.  I especially like the junior gold miners especially the explorers now in Nevada and Quebec.  Governments can print another trillion dollars by pressing a button at the printing press.  This can’t be done in the gold exploration business.  It takes years and a lot of divine blessing to find a million ounces of gold.   Investors may now be able to believe this as gold breaks above the 200 day moving average.

By Jeb Handwerger

Disclosure: Author owns no stocks mentioned.

http://goldstocktrades.com

© 2015 Copyright Jeb Handwerger - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in