Gold and Silver equities have led the markets lower and have underperformed the metals significantly this year. For the past month or so Gold has firmed and Bonds have moved higher as most asset classes have declined. Unfortunately mining equities have been among the worst performers. However, our work leads us to believe that an important bottom should be in place very soon.
From top to bottom we plot GDXJ (junior golds), SIL (silver stocks), and GDX (large cap golds). While each has broken down in recent days, each is only 5-6% away from a confluence of very strong… Continue reading