With the war in the gold and silver markets continuing to rage, look at what is happening with gold, silver and the mining stocks.
Gold & Silver Battle Continues
October 15 (King World News) – James Turk: The precious metals are holding their ground in this ongoing battle, Eric. They have not been derailed by high volatility, whether it has come from choppy markets or huge price swings.
Since August, silver has traded within an $8 range. That’s a 27% range of silver’s $29.90 high price and 45% of its $17.82 price at the start of the year. This huge price swing over just a couple of months is exceptional compared to the last several years…
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Silver is still in a correction, but it keeps bouncing back, which is the important point. The same for gold. Gold’s $210 per ounce trading range over this same period is not as volatile as silver, but gold also keeps bouncing back. Like silver, gold bends during selling onslaughts, but does not break.
Considerable Upside Ahead
Gold is up nearly $400 so far this year, and with all the debt loads being taken on by governments around the world and endless money printing by their central banks, we know that there is considerably more upside potential for both gold and silver in the weeks and months ahead.
Because of that favorable outlook, one of the most frustrating things in portfolio management, Eric, are the whipsaws. These are the quick moves that look like the beginning of a trend reversal, but just as quickly give up the ghost. They are like head-fakes in football. Getting whipsawed happens regardless of whether you are trading for the short-term or managing your investments for the long haul.
The key to successful money management is trading and investing in harmony with the trend in price, and then selling when the asset is overvalued or buying when it becomes undervalued. But in practice there are whipsaws along the way, as is clear from this chart of the XAU Mining Share Index.
XAU Mining Stock Index Had A Bull Trap And
A Bear Trap Recently. In Reality It Is Nicely
Consolidating 2020’s Gains
This index is in a clear uptrend from its low price in March. From the beginning of this year, the XAU Index is one of the best performers, having risen 41% as of yesterday’s closing price. But the two whipsaws outside the 160-to-140 trading range – labeled in normal market jargon as ‘traps’ – have faked out both the bulls and the bears.
Miners To Remain Top Performers
Nevertheless, like the precious metals themselves, there is much upside potential in the mining shares. It will over time be reflected in higher prices and even bigger dividend payouts than the ones already being announced during the current earnings reporting period. The precious metals and the shares of the companies that mine them are likely to remain top performers until sanity returns in central banks, and there is no sign of that at the moment.
KWN audio interview has now been released!
***To listen to the powerful KWN audio interview with Alasdair Macleod discussing the incredible crisis the world is facing and how it will impact major markets, including gold and silver CLICK HERE OR ON THE IMAGE BELOW.
Seeing Wild Things In Real Estate
***ALSO JUST RELEASED: We Are Seeing Some Really Wild Things Happening In The Real Estate Market CLICK HERE.
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