This Gold Rally is Both Great News... and Sad News

In This Issue…

Great news: Gold and silver keep grinding higher, rewarding everyone who’s positioned in metals and miners. (Real estate and hard gold/silver count as well)The charts are showing strength, and the long-term bull market is alive and well.

Sad news: Those same gains are a mirror of what’s happening to our money. Every dollar in your bank account is losing buying power year after year. What feels like profit in gold is really a reflection of the quiet destruction of currency.

I usually focus on technicals, but I came across a fantastic fundamentals breakdown on YouTube about gold and silver.

Here’s a short summary for you:

Gold

• Gold is in a major long-term bull market. Past cycles have seen gold rise about 8× from the lows — we’re only about 3× up from 2015’s bottom, so history suggests there’s plenty more room.

• At ~$3,700, it may feel “high,” but on a longer perspective it’s still early in the move.

• Big investors are already shifting money out of stocks and into gold, treating it as the safer, stronger play.

Silver

• Silver is deeply undervalued relative to gold. Historically, silver is worth about 2% of gold’s price. Today, it’s only around 1.1%.

• If gold stays near $4,000 and silver just returns to normal levels, silver could trade around $80 an ounce. If momentum really kicks in, it could reach $100–$120.

• Near-term, the expectation is for silver to “gush” higher into the $60–$70 zone — and that’s just the beginning, not the end.

• Importantly: when silver outperforms gold, it usually means both metals are going vertical together.

Miners (Gold & Silver Stocks)

• Mining stocks are still cheap compared to the metals themselves. In past decades, miner indexes traded around 25% of gold’s value. Today they’re barely 7–8%. That suggests miners could double or triple just to get back to normal valuations.

• Many gold miners (like the big ETFs GDX/XAU) have only just gotten back to where they were in 2011 — while gold itself is already far above those levels. In “real terms,” miners are still behind.

• Silver miners are even further behind. Because they’ve lagged so much, they may offer the biggest upside “slingshot” effect if silver really runs.

• Asset managers (big funds) have started rotating into miners, which is why some names have already exploded higher. But even after big gains, the sector is still undervalued and under owned.

Fundamentals are sounding great and while I like to believe in them, I only trust the price.

Top Setup for the day - Gold

I am making sure that I own some gold and silver miners at all times during this rally.

$HMY ( ▼ 4.49% ) - Super Long term trade

• The recent drop wasn’t weakness — it was a deliberate shakeout. Big institutions drove the price down, stole stock from nervous sellers, then scooped up shares at a discount.

• Shakeouts are always a big hint!

• You can swing trade this too!

The longer term holder will avoid G2, and G3 and use the 20MA/50MA as the guide.

If you participate in this and you are not stopped out. Lets get in touch in 1-2 years

Get the trade alerts, education, and edge our free readers miss.

Already a paying subscriber? Sign In.

Your Premium Subscription Includes:

• • 3–10 curated stock & crypto picks each week
• • Clear Buy/Sell Rules for Maximum Profit
• • Educational breakdowns — learn while you earn
• • 70% refund if you don’t make your money back
• • Full access to our Education Hub — learn while you earn