Is The Gold, Silver And Mining Stock Pullback Over?

October 23, 2020
MBA, Market Analyst & Author @ The Mining Stock Journal

The precious metals sector began to pullback in early August after a frenzied run-up in July. The technical/momentum indicators were flashing “overbought.” In the meantime, most economic indicators have been telling us the so-called “V” bounce in economic activity is over with the exception of some lingering “impulses” in certain sectors.

In the meantime, price inflation is starting to accelerate. This is reflected in the move toward 1% by the 10-yr Treasury despite the Fed’s efforts to keep interest rates suppressed. Furthermore, the Government is getting ready to issue another avalanche of debt and, notwithstanding bank CEO propaganda expressing exuberance, bank balance sheets are starting to melt-down again.

Over the last couple of weeks several Fed officials on a daily basis have been delivering speeches which appear to be prepping the public for a lot more money printing.

In short, both the technical and fundamental indicators are now in place to support another big move higher in the precious metals sector. Chris Marcus (Arcadia Economics) and I discuss the reasons by the precious metals sector is set-up for the next leg higher:

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Dave Kranzler spent many years working in various analytic jobs and trading on Wall Street. For nine of those years, he traded junk bonds for a large bank. He has an MBA from the University of Chicago, with a concentration in accounting and finance. He currently co-manages a precious metals and mining stock investment fund in Denver. My goal is to help people understand and analyze what is really going on in our financial system and economy. Dave publishes the The Mining Stock Journal a bi-weekly subscription newsletter that features junior mining ideas as well as relative value ideas in large cap mining stocks.

 

The volume of all the gold ever mined can occupy a cube 63 feet on each side.

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