Gold Miners Make a Break for It

The stock market is experiencing such whipsaws lately that a neck brace should become a common fashion statement on Wall Street.

But there’s one industry that has been bullish since November, and it’s turning even more bullish now.

I’m talking about gold miners. And you can make a Fort Knox-load of money on what’s going to happen next.

Here’s a chart of big gold miners, as tracked by the VanEck Gold Miners ETF (NYSE: GDX).

You can see gold miners have enjoyed an uptrend since November. They corrected a bit in February and early March.

That’s not unusual. Nothing travels in a straight line. But oh, baby, look at that new breakout.

Now, on March 19, I gave you a bunch of reasons why this is happening. To sum up (again): global “peak gold” supply, the Fed turning on the easy-money taps, unrest in Europe, and central bank gold buying are just SOME of the reasons.

Let’s revisit that last one. I have a new chart for you, because central banks are ramping up their gold buying AGAIN!

According to data collected by Forbes, central bank gold buying ramped up 36% last year. And other sources show that China and Russia continue to lead the charge as banks scoop up gold with both hands. They both made big purchases in January.

In my last article, I also told you how to play this: the gold juniors and explorers. That outlook hasn’t changed.

After all, we’re seeing mergers among big-cap miners. At the same time, the big miners are seeing their production shrink, so they have to replenish their resources.

The easiest way to do that is to buy up juniors that have already done the hard work of exploring, and potentially even developing, good projects.

So, let’s go back to my first chart near the top of this page. You can see that gold miners pushed through that corrective downtrend. There is still overhead price resistance, but that won’t last for long.

When the breakout comes — and it should come fairly soon — the GDX should be off to the races. My first target would be $31.50. That’s 36% higher than recent prices. And that’s only an initial target.

The real outperformance will be in individual miners. Those carry more risk, but the reward can be extraordinary. It takes some hard work on your part as an investor or trader, so be prepared to roll up your shirt sleeves and do some math.

But it will be worth it! Gold miners have been crushed for so long that many names have hit-it-out-of-the-ballpark potential.

Do your own due diligence. But don’t delay. Gold miners are already making a break for it. Silver miners could break out even harder. The foundations of your next fortune could be laid in the coming days.

All the best,

Sean

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Comments 4

  1. Charles March 27, 2019

    I’m confused and DISAPPOINTED. This article is dated March 26, 2019, yet in the article you state “Now, on March 29, I gave you a bunch of reasons why this is happening.”

    Just how can you give reasons 3 days in the future?

    Reply

    • Sean Brodrick March 27, 2019

      It is a typo. It should read “March 19”. Glad you caught it.

      Reply

  2. Stephen Ettinger March 27, 2019

    SEan,
    It is very easy to surface scratch a particular vertical ,market and throw a prediction out there that gold is going parabolic. I am donw 65% from the last crash. Great companies that the Weiss team – Including Larry Edelstein who wrote to me from Vietnam told me Nova Gold, IM GOLD, Kinross Gold, and many of the other QUALITY GOLD COMPANIES were wher ethe money needs to go. – SIMPLE. LOST 65% OF MY MONEY ON PAPER. You say – do your homework, find the best stocks to invest in now while they are lower. I lost over $25,000 with LArry and ma sitting on valuations I did not sell @ 65% BELOW COST. He gave me insights. They got crushed. You say go out and do your homework. I did my homework. Agnico Ashante and IMGOLD are very strong companies. ???? I know you will not tell anyone individually what to buy, … you can’t. But you can hint at 10 stocks to look at – BASED UPON YOUR EXPERIENCE and what you believe is a strong play. – telling us – your readers to do your homework is an easy way to dodge a bullet. – So how about sharing your ideas. ???????? You gave us Lithium, uranium, and pot stock plays and none of them panned out. In fact Aurora Pot stock got us killed. But it was our decision to buy, not yours. So throw out some solid Gold companies that have cash, are undervalued and are true contrarian plays for the next gold boom. If you are so sure gold is going to make a killing, throw the contrariam plays out there for us to explore.
    Thank you Sean!
    S.S. ETTINGER.

    Reply

  3. Richard Ronveaux April 3, 2019

    Casey thinks it all will fall before re-election time and Trump will be a one term Pres

    Reply