Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
USDT Ponzi Scheme FINAL WARNING To EXIT Before Tether Collapses Crypto Exchange Markets - 22nd Jun 21
Stock Market Correction Starting - 22nd Jun 21
This Green SuperFuel Could Change Everything For the $14 Trillion Shipping Industry - 22nd Jun 21
Virgin Media Fibre Broadband Installation - What to Expect, Quality of Wiring, Service etc. - 21st Jun 21
Feel the Inflationary Heartbeat - 21st Jun 21
The Green Superfuel That Could Disrupt Global Energy Markers - 21st Jun 21
How Binance SCAMs Crypto Traders with UP DOWN Coins, Futures, Options and Leverage - Don't Get Bogdanoffed! - 20th Jun 21
Smart Money Accumulating Physical Silver Ahead Of New Basel III Regulations And Price Explosion To $44 - 20th Jun 21
Rambling Fed Triggers Gold/Silver Correction: Are Investors Being Duped? - 20th Jun 21
Gold: The Fed Wreaked Havoc on the Precious Metals - 20th Jun 21
Investing in the Tulip Crypto Mania 2021 - 19th Jun 21
Here’s Why Historic US Housing Market Boom Can Continue - 19th Jun 21
Cryptos: What the "Bizarre" World of Non-Fungible Tokens May Be Signaling - 19th Jun 21
Hyperinflationary Expectations: Reflections on Cryptocurrency and the Markets - 19th Jun 21
Gold Prices Investors beat Central Banks and Jewelry, as having the most Impact - 18th Jun 21
Has the Dust Settled After Fed Day? Not Just Yet - 18th Jun 21
Gold Asks: Will the Economic Boom Continue? - 18th Jun 21
STABLE COINS PONZI Crypto SCAM WARNING! Iron Titan CRASH to ZERO! Exit USDT While You Can! - 18th Jun 21
FOMC Surprise Takeaways - 18th Jun 21
Youtube Upload Stuck at 0% QUICK FIXES Solutions Tutorial - 18th Jun 21
AI Stock Buying Levels, Ratings, Valuations Video - 18th Jun 21
AI Stock Buying Levels, Ratings, Valuations and Trend Analysis into Market Correction - 17th Jun 21
Stocks, Gold, Silver Markets Inflation Tipping Point - 17th Jun 21
Letting Yourself Relax with Activities That You Might Not Have Considered - 17th Jun 21
RAMPANT MONEY PRINTING INFLATION BIG PICTURE! - 16th Jun 21
The Federal Reserve and Inflation - 16th Jun 21
Inflation Soars 5%! Will Gold Skyrocket? - 16th Jun 21
Stock Market Sentiment Speaks: Inflation Is For Fools - 16th Jun 21
Four News Events That Could Drive Gold Bullion Demand - 16th Jun 21
5 ways that crypto is changing the face of online casinos - 16th Jun 21
Transitory Inflation Debate - 15th Jun 21
USDX: The Cleanest Shirt Among the Dirty Laundry - 15th Jun 21
Inflation and Stock Market SPX Record Highs. PPI, FOMC Meeting in Focus - 15th Jun 21
Stock Market SPX 4310 Right Around the Corner! - 15th Jun 21
AI Stocks Strength vs Weakness - Why Selling Google or Facebook is a Big Mistake! - 14th Jun 21
The Bitcoin Crime Wave Hits - 14th Jun 21
Gold Time for Consolidation and Lower Volatility - 14th Jun 21
More Banks & Investors Are NOT Believing Fed Propaganda - 14th Jun 21
Market Inflation Bets – Squaring or Not - 14th Jun 21
Is Gold Really an Inflation Hedge? - 14th Jun 21
The FED Holds the Market. How Long Will It Last? - 14th Jun 21
Coinbase vs Binance for Bitcoin, Ethereum Crypto Trading & Investing During Bear Market 2021 - 11th Jun 21
Gold Price $4000 – Insurance, A Hedge, An Investment - 11th Jun 21
What Drives Gold Prices? (Don't Say "the Fed!") - 11th Jun 21
Why You Need to Buy and Hold Gold Now - 11th Jun 21
Big Pharma Is Back! Biotech Skyrockets On Biogen’s New Alzheimer Drug Approval - 11th Jun 21
Top 5 AI Tech Stocks Trend Analysis, Buying Levels, Ratings and Valuations - 10th Jun 21
Gold’s Inflation Utility - 10th Jun 21
The Fuel Of The Future That’s 9 Times More Efficient Than Lithium - 10th Jun 21
Challenges facing the law industry in 2021 - 10th Jun 21
SELL USDT Tether Before Ponzi Scheme Implodes Triggering 90% Bitcoin CRASH in Cryptos Lehman Bros - 9th Jun 21
Stock Market Sentiment Speaks: Prepare For Volatility - 9th Jun 21
Gold Mining Stocks: Which Door Will Investors Choose? - 9th Jun 21
Fed ‘Taper’ Talk Is Back: Will a Tantrum Follow? - 9th Jun 21
Scientists Discover New Renewable Fuel 3 Times More Powerful Than Gasoline - 9th Jun 21
How do I Choose an Online Trading Broker? - 9th Jun 21
Fed’s Tools are Broken - 8th Jun 21
Stock Market Approaching an Intermediate peak! - 8th Jun 21
Could This Household Chemical Become The Superfuel Of The Future? - 8th Jun 21
The Return of Inflation. Can Gold Withstand the Dark Side? - 7th Jun 21
Why "Trouble is Brewing" for the U.S. Housing Market - 7th Jun 21
Stock Market Volatility Crash Course (VIX vs VVIX) – Learn How to Profit From Volatility - 7th Jun 21
Computer Vision Is Like Investing in the Internet in the ‘90s - 7th Jun 21
MAPLINS - Sheffield Down Memory Lane, Before the Shop Closed its Doors for the Last Time - 7th Jun 21
Wire Brush vs Block Paving Driveway Weeds - How Much Work, Nest Way to Kill Weeds? - 7th Jun 21
When Markets Get Scared and Reverse - 7th Jun 21
Is A New Superfuel About To Take Over Energy Markets? - 7th Jun 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Seasonality Favors Gold, Silver and Junior Mining Stocks Going Into Year End

Commodities / Gold and Silver 2017 Dec 15, 2016 - 05:16 PM GMT

By: Jeb_Handwerger

Commodities

Summary
Gold and silver could once again be ready to rally possibly starting in days or in the beginning of 2017.

Precious Metals usually bottom at year end then have massive rallies in the New Year.

Remember the lower it goes the higher it runs and the more gains made in the following year.


Right now the US dollar (UUP) is extremely overbought while precious metals are the most oversold in many years despite being in a long term uptrend.

This strong US dollar in relation to other collapsing currencies has made it very difficult for miners and explorers over the past few years. It will also make it harder for foreigners to invest in US real estate or buy US goods. The rising dollar and higher interest rates are a double whammy for those paying off large debts including our US Federal Government.

The dollar is hitting a 15 year high making it very hard and expensive for US mining, manufacturing and real estate. This currency imbalance of strong US dollar versus weak global currencies could change quickly under President Trump as he has already committed to taking on other nations who have been devaluing their currencies to gain a competitive edge with trade.

The junior mining sector and precious metals continue to be in a bear market due to this rising dollar and QE Taper since 2011 while other nations have been devaluing their currencies to ridiculous low levels such as the Yuan, Ruble and Rupee. The bear market in precious metals and junior miners appeared to end in the beginning of 2016 but was smacked down as the rise of Trump in the US has even pushed stocks and the US dollar even higher. Meanwhile precious metals and the miners remain dirt cheap testing major support.

The precious metals are very oversold and ripe for a reversal as they usually bottom at year end then have massive rallies in the New Year. This seasonal pattern has been strong even during this bear market.

I believe Trump will support inflation and infrastructure and should run into even further deficits. I believe the Euro is slowly disintegrating. China, India and Russia are crashing their currencies to support their economy through exports. The Middle East Sunni Shiite War is worse than ever. All this uncertainty leads me to want to hold gold and silver not fiat currencies.

The QE taper and fear of rising rates has caused gold to correct in US dollar terms meanwhile its soaring in terms of Yen, Euro and Yuan. However many are concerned Central Banks worldwide are secretly suppressing gold and silver prices manipulating prices lower. Remember it suits the Central Banks to keep the price low as they are some of the largest buyers during this pullback. They don't want the average Joe to pull their cash burning a hole in their pocket in favor of gold and silver coins.

The victory of Trump for US President caused a huge selloff in precious metals and miners as investors focused on the banks as interest rates soared. There was a huge risk on rally as investors bought stocks and dumped bonds and precious metals.

However, that first reaction may be a knee-jerk one and cause a blow off move in stocks and the dollar. Precious metals and mining may even grow greater in favor under President Trump. Trump wants inflation and supports mining and manufacturing which has been almost destroyed over the past eight years by regulations.  Now may actually be the turning point in precious metals going into year end when gold is pulling back to uptrend support and is very oversold.

The recent correction in gold (NYSEARCA:GLD), silver (NYSEARCA:SLV) and the miners (NYSEARCA:GDX) especially the explorers (NYSEARCA:GDXJ) is quite normal from a seasonal perspective. Precious metals sell off into year end only to see powerful rallies in the new year. Remember the lower it goes the higher it runs and the more gains made in the following year. Precious metals and currencies are volatile and the worst move could be buying it at the extremes. Right now the US dollar (NYSEARCA:UUP) is extremely overbought while precious metals are the most oversold in many years despite being in a long term uptrend.

Disclosure: I do not own shares in any of these etf’s.

By Jeb Handwerger

http://goldstocktrades.com

© 2016 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.


© 2005-2019 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