Note below is from one of our very smart EPG members.
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There was a tv show that aired from the late 70s – early 80s that was called “Eight is Enough.”
It was about a family with 8 children that starred Dick van Patten as the father.
Gold has now been up for 8 days in a row and has added nearly 7% in the process.
Eight days in a row might be short term (14-Day RSI = 83; SMCI’s 14 Day RSI got to 97 on Feb 15), but I’m big on winning streaks (heck, we want our teams to have winning streaks) and believe that gold’s target is 2444 and that it should be bought on any pullback. Here’s the chart that appeared in last Saturday’s Commodity Chart Packet and again in “To Be Real” from Mar 5. The former 3 ½-Year Potential BIG BASE has been realized!
In my opinion, the best gold stock is Harmony Gold Mining (HMY), $4.4B market cap company with mining assets in S. Africa and Papua New Guinea.
Gold
Re: Gold
Gold was on my mind and thanks for the post. Gold broke thru technical resistance finishing decisively most of the week over technical resistance at $2,100 per ounce. This excerpt from David Hay's newsletter today:
“Like Liberty, gold never stays where it is undervalued.” - John S. Morrill
“Invest in scarcity.” -Tony Deden, as relayed to me by Grant Williams
Gold’s decisive breakout this week has attracted scant media coverage. Perhaps that’s because the yellow metal has been out-of-favor since 2020. Its steady, but deliberate, increase from the September 2022 trough — when the S&P 500 coincidentally also hit bottom — might be why it has stayed off the financial media’s radar. Since then, it is up 29%. While that trails the S&P’s 45% return over the same timeframe, it is nonetheless a respectable return, particularly for a lower risk asset. Reflecting its store of value nature, it is increasingly edging out U.S. Treasurys as the reserve asset of choice for foreign central banks. Despite its rising popularity, particularly in China and India that have a combined population of nearly 3 billion, the majority of U.S. investment advisors have less than 1% exposure to bullion. That may be poised to change in a significant way.
“Like Liberty, gold never stays where it is undervalued.” - John S. Morrill
“Invest in scarcity.” -Tony Deden, as relayed to me by Grant Williams
Gold’s decisive breakout this week has attracted scant media coverage. Perhaps that’s because the yellow metal has been out-of-favor since 2020. Its steady, but deliberate, increase from the September 2022 trough — when the S&P 500 coincidentally also hit bottom — might be why it has stayed off the financial media’s radar. Since then, it is up 29%. While that trails the S&P’s 45% return over the same timeframe, it is nonetheless a respectable return, particularly for a lower risk asset. Reflecting its store of value nature, it is increasingly edging out U.S. Treasurys as the reserve asset of choice for foreign central banks. Despite its rising popularity, particularly in China and India that have a combined population of nearly 3 billion, the majority of U.S. investment advisors have less than 1% exposure to bullion. That may be poised to change in a significant way.
Re: Gold
Looks like there is a massive disconnect between the price of gold and gold stocks. I know the miners have had pretty bad inflationary costs (such as diesel and labor) the last 2-3 years, but can't help but think there are some really good opportunities in gold stocks right now.
Re: Gold
Twitter X comments on current margins on gold miners in favorable jurisdictions with a couple of solid picks.
https://x.com/htsfhickey/status/1764818444199833650?s=61
My view is if gold continues to close above resistance around $2,100, the interim target cited in Dan’s post will be achieved within next 6 months and the miners have a ton of catching up to do. Strap in.
https://x.com/htsfhickey/status/1764818444199833650?s=61
My view is if gold continues to close above resistance around $2,100, the interim target cited in Dan’s post will be achieved within next 6 months and the miners have a ton of catching up to do. Strap in.