There is something big brewing in the gold, silver and mining share markets as we head into 2018.
December 26 (King World News) – The gold mining stocks are finally looking to assert themselves and lead the metals higher…
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Below is a 5-year chart of the HUI (Gold Mining Index). The HUI is set for a monthly close in December above the 50-month moving average. If that December monthly close above the 50-month moving average takes place, watch for January, February and March closes above the 50-month moving average, which would mark the first time the HUI has had 4 consecutive closes above the 50-month moving average in more than 5 years (see chart below)!
HUI Breaking Back Above Key 50-Month Moving Average
Gold Hinting Massive HUI Breakout Is Coming!
Below you can see that the gold ETF (GLD) has already had 5, about to be 6, consecutive closes above the 50-month moving average (see chart below).
Gold Has Broken Out And Is Ready To Advance
The Big Gold Breakout Is Coming!
The big gold breakout will take place when the price of gold breaks solidly above the 30-quarterly moving average. A surge in the price of gold above $1,400 will also move the quarterly MACD into a buy signal for the first time in 5 years! (See chart below).
Quarterly MACD Close To Issuing A Major Gold Buy Signal!
The Bottom Line
The bottom line here is that as pessimism in gold, silver, and the mining shares, crescendoed at the end of 2017, it was met with large volumes of smart money buying out of the East (for physical gold and silver), and (on the mining share side) by insiders of high-quality mining and exploration companies. Remember, the cash flows of the high-quality mining companies are already at an all-time high (see chart below).
Yes, free cash flows for mining companies are at all-time highs, breaking the record set in 2011! And yet the HUI is roughly 70% lower than it was in 2011. That is how irrational things have become in the gold and silver sector, but it will not be a state of permanence. The purpose of the psychological warfare conducted in the paper markets is to keep people away from gold and silver and also to get them to sell.
Bottom Line: Patience
The bottom line is the long-term bullish trend is very powerful for the price of gold as well as the high-quality mining shares, despite the fact that games will be played in the paper gold market so that the commercials can cover short positions. For all of the gold and silver bulls, the wind is now at your back and will it will continue to be that way for many, many years to come as the prices of gold and silver make their way to new all-time highs. All that is required at this point is patience. 2018 is setting up to be a very big year for the gold and silver bulls.
***To listen to the remarkable 2018 predictions from Dr. Stephen Leeb CLICK HERE OR ON THE IMAGE BELOW.
***ALSO JUST RELEASED: A 50-Year Veteran Just Issued This Warning As We Head Into 2018 CLICK HERE.
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