Gold Investment Soaring!

By Adam Hamilton – Re-Blogged From Gold Eagle

Gold investment demand is soaring in the wake of the COVID-19 stock panic! Investors are rushing back into gold to diversify after seeing mind-boggling central-bank money printing and government spending. Since that epic monetary inflation won’t be unwound, and investors were radically underinvested in gold before the panic, this trend is likely to persist for years. It will catapult gold and its miners’ stocks far higher.

The most comprehensive look into global gold investment demand is published quarterly by the World Gold Council. Its experts have been deeply studying the gold markets for decades, which shows in their outstanding Gold Demand Trends reports. These must-read analyses are released about a month after calendar quarters end. But while that data is invaluable, in fast-moving markets like these it simply isn’t enough.

Continue reading

Gold Mid-Tiers’ Q4’19 Fundamentals

By Adam Hamilton – Re-Blogged From Gold Eagle

The mid-tier gold miners’ stocks have been annihilated with COVID-19 fears infecting traders’ sentiment. They crashed with gold getting hammered on extreme gold-futures selling! With blood in the streets, the buy-low opportunities are phenomenal. The fundamentally-superior mid-tier gold miners have epic upside potential during gold’s next upleg. This key sector just reported outstanding Q4’19 results on higher gold.

The sheer carnage in gold-stock-land has been jaw-dropping! In late February, the gold-stock sector per its leading benchmark GDX VanEck Vectors Gold Miners ETF edged up to a 3.5-year high slightly above early September’s. That was fueled by gold’s $1600 breakout surge on COVID-19 fears. Yet as I warned in an essay the trading day before GDX’s peak, gold’s surge was peculiar and precarious lacking normal drivers.

Continue reading

Gold-Stock Red October

By Adam Hamilton – Re-Blogged From Gold Eagle

The gold miners’ stocks have largely ground sideways in the last couple months, consolidating their big mid-summer gains.  That drift is slowly bleeding away greedy sentiment, but this sector remains really overbought.  Gold stocks’ dominant driver gold is even more overbought, and still facing a massive gold-futures-selling overhang.  This makes October, gold stocks’ weakest month seasonally by far, particularly risky.

The gold stocks have enjoyed a big run since late May.  Their leading benchmark and trading vehicle is the GDX VanEck Vectors Gold Miners ETF.  Birthed way back in May 2006, its first-mover advantage has proven insurmountable.  This week GDX’s $12.0b in net assets were a colossal 36.4x larger than its next-biggest 1x-long major-gold-miners-ETF competitor!  GDX is the most-popular metric to track sector performance.

Continue reading

Gold Stocks Very Overbought

By Adam Hamilton – Re-Blogged From Gold Eagle

The gold miners’ stocks have grown very overbought after soaring dramatically higher in recent months. Blasting really far really fast has left this sector really stretched technically and sentimentally. Excessive gains and greed always soon lead to major corrective selloffs, which are necessary to restore balance. All bull markets, even the most powerful, flow and ebb. Big uplegs are inevitably followed by corrections.

With gold and gold stocks plunging hard Thursday morning, the timing of this research thread is certainly lucky. My weekly-web-essay workflow is well-defined, this happens to be the 877th I’ve written. I have to decide on each week’s topic by early Wednesdays, to do the research and build necessary spreadsheets and charts that day. Then I write and proof these essays Thursdays, so they can be published early Fridays.

Continue reading

Gold Stocks Gather Steam

By Adam Hamilton, CPA – Re-Blogged From Gold Eagle

Gold stocks’ young upleg is gathering steam, marching steadily to higher lows and higher highs. These bullish technicals are gradually improving sentiment, fueling mounting interest in this contrarian sector. That’s helping the gold stocks regain lost ground relative to gold, the driver of their profits. Fundamentals are growing more favorable as gold itself powers higher. All this portends much-bigger gold-stock gains coming.

Despite a strong rebound upleg in recent months, the gold miners’ stocks are still flying under the radars of most speculators and investors. They aren’t aware the gold stocks are running again, and likely don’t realize how massive gold-stock uplegs can grow. That’s unfortunate, because the biggest gains are won early in young uplegs before they are universally recognized. Buying low early on is the key to multiplying wealth.

Continue reading

Gold-Stock Triple Breakout

By Adam Hamilton – Re-Blogged From Gold Eagle

The beleaguered gold stocks are recovering from their late-summer capitulation, enjoying a solid young upleg as investors gradually return.  Their buying has pushed the leading gold-stock ETF near a major triple breakout technically.  That event should really boost capital inflows into this sector, accelerating the rally.  A major gold and gold-stock buying catalyst is likely imminent too, a more-dovish Fed next week.

The gold miners’ stocks have always been a small contrarian sector, a little-watched corner of the stock markets.  But they’ve been even more unpopular than usual in recent months.  That pessimistic sentiment is driven by price action, which has mostly proven poor in 2018.  That’s really evident in the performance of the flagship gold-stock investment vehicle, the GDX VanEck Vectors Gold Miners ETF which is struggling.

Continue reading

Gold-Stock Summer Lows

By Adam Hamilton – Re-Blogged From http://www.Gold-Eagle.com

The gold miners’ stocks have been drifting sideways to lower like usual in their summer doldrums. They are likely near their major seasonal lows ahead of a strong autumn rally, a great buying opportunity. Gold rebounding higher will be the primary driver fueling the gold-stock advance, dispelling today’s bearish psychology. And strong Q2 production growth will likely play a sizable role in restoring favorable sentiment.

Market summers have long been gold’s weakest time of the year seasonally. Junes and early Julies in particular are simply devoid of the big recurring demand spikes seen during most of the rest of the year. With traders vacationing to take advantage of warm sunshine and kids being out of school, markets take a back seat. So there’s no outsized gold buying driven by income-cycle or cultural factors this time of year.

Continue reading