Today the mining stocks ignored the gold and silver takedown, but here is the big surprise…
Miners Ignore Gold & Silver Takedown
October 13 (King World News) – Fred Hickey: Gold hit this AM on algo-driven selling (correlation selling on rising US$). Miners not playing along -rallying back with some majors (Barrick, Agnico) now up.
Gold In Bull Market vs All Fiat Currencies
King World News note: Let’s take a deeper look at what Fred Hickey was noting. Below you can see a chart of the US dollar, which for some reason still moves the gold market. I only use the word “still” because gold is in a bull market vs all fiat currencies, including the US dollar (see chart below).
King World News note continues: Meanwhile, the gold market continues its lengthy consolidation near the key $1,900-$1,923 zone (see chart below).
King World News note continues: For the silver bulls, silver is simply continuing to consolidate its massive gains for 2020, very similar to gold (see chart below).
XAU Mining Stock Index
King World News note continues: As Hickey noted, the mining stocks were not buying into the gold and silver takedown. The reason for that is the miners are under massive accumulation by big money and big money doesn’t care about the Fed’s short term paper shenanigans with the gold price. Meaning, the big money is buying for the long term and doesn’t care about short term volatility (see chart below).
HUI Mining Stock Index
King World News note continues: You can see the same pattern with the HUI mining stocks which also were not buying into the gold and silver takedown. Again, the big money is buying for the long term and doesn’t care about short term gold volatility (see chart below).
The Bottom Line
King World News note continues: The bottom line for those of you who are dollar cost accumulating physical gold and silver, do not try to get cute and time the market. Instead, simply make your purchases at the same time each month or quarter. You will be glad you did when the financial system is rebooted…
Billionaire and mining legend Ross Beaty, Chairman of Pan American Silver, just spoke about what he expects to see in the gold and silver markets and also shared one of his top stock picks in the mining sector CLICK HERE OR ON THE IMAGE BELOW TO HEAR BEATY’S INTERVIEW.
King World News note continues: For those investing in mining stocks, patience is required during these types of long periods of consolidation. And as always, use large price smashes to accumulate shares of your favorite miners. The precious metals markets and the mining stocks will eventually end up in a mania where people won’t even believe the share prices they are being quoted.
Gold & Silver Tumble, But Look At This
***ALSO JUST RELEASED: US Dollar Rallies, Gold & Silver Tumble, But Look At What Else Is Happening CLICK HERE.
***KWN has now released this timely and powerful audio interview with Michael Oliver and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
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