Fred Hickey on the coming explosion in the gold sector…
July 12 (King World News) – Fred Hickey of the High Tech Strategist had this to say about the gold market earlier in the year:
“We have this huge disconnect between the price of gold and the margins of the miners — which are doing very well because they had to keep their costs low — and the price of the stocks. Now, ultimately, that will get corrected. We saw the huge run in 2015, where gold went up 30% in the beginning of 2016 and the miners went up 180%.
And we saw that in 2000, when gold went up quite a bit, and the miners went up 1600%. That’s 17 times the average. We saw that in the 1970s coming out of the bear market there. We saw that on the big net buyers went up at least 10 times, and some of them went up as much as 30 times. So, this happens regularly when the miners get depressed. They get out of whack with the price of gold and margins, and then they slingshot higher. And that’s what I think we’re about to see.
We’re right there. I think there’s going to be enormous amounts of money entering this sector once again, just as we saw in early 2000s, just like we did coming out of 2015, the bottom, just as we did coming out of the 1970s mid-cycle correction. So, I’m pretty excited about it.”
King World News note: Although we have not yet seen the vault higher in gold and the mining share market, Fred Hickey is right that it is coming, it’s just a matter of time.
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