Gold recently rallied up to $2000 resistance and pulled back as expected. But with the rebound in the stock market, this pullback could become more entrenched via time and/or price.
But anyway, here are those two important developments....
First, valuations in select juniors are very close to 2008 & 2016 bottom levels.
Every week I publish my Top 10 Table and Watch List Table. These tables include the market cap and cash of these companies. As I updated the figures last weekend, I was surprised at some of the market caps.
One example is a few what I would term "blue chip juniors." They have some of the best deposits and/or best growth potential.
A year or two ago maybe they had 2x or 3x upside. Now, with the price much lower, these companies could have a minimum 5x upside in a multi-year bull market. That is just one of several examples.
Second, there has been a significant amount of forced selling in miners and juniors.
I cannot go into specifics but let's just say investment funds are getting redemptions and therefore they are selling positions. It has been ongoing and significant.
Forced selling & bottom level valuations smells of a major turning point on the horizon.
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And that horizon is a secular turning point, led by Bonds.
In this video I explain secular turning points and what follows a secular peak in Bonds.
Video: First Bonds, Then Stocks...
Below I interview Brent Johnson of Santiago Capital, who thinks that we are getting closer to the point where Gold and the Dollar will rise together.
TDG Podcast: Gold & US$ Close to Rising Together
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