Good Morning!

Gold and Silver broke out again late last week. 

Gold closed above $2700 last Thursday, and Silver followed Gold’s breakout with one of its own. 

Last Friday, Silver closed above $33, surpassing resistance at $32.50, which had held Silver since the middle of May. The breakout from a rough inverted head-and-shoulders continuation pattern projects to a target of $38!

This is quite exciting for the precious metals sector, but here are some additional potential breakouts to watch.

Inflation-Adjusted Gold Price

First is the inflation-adjusted Gold price. This is significant because it is the best indicator for gold miners over long periods of time.

Data from MacroTrends shows Gold against the CPI is closing in on a 45-year breakout. The data from the top chart is not updated yet, but if it were, it would look quite similar to the MacroTrends version. 

Gold Stocks vs. Gold, Silver Stocks vs. Silver

Next up are the miner ETFs against their respective metals.

We plot GDX (top) and GDXJ (middle) against Gold and SILJ against silver at the bottom.

The gold stocks are very close to breaking out against Gold, and the same can be said about the silver stocks breaking out against Silver. 

Gold Stocks vs. Stock Market

Finally, we plot the gold stocks against the S&P 500.

Gold stocks have broken out to new 16-month highs against the stock market. 

Conclusion

The precious metals sector is becoming more overbought, but plenty of charts show this move has a long way to go.

The breakout in the inflation-adjusted Gold price has tremendously bullish implications over the coming years.

The strengthening of gold and silver stocks against the metals and also against the stock market has bullish implications over at least the next 12 months. 

To invest in gold and silver stocks, continue to focus on quality assets and value. A few months ago, I emphasized quality more, but now I focus more on value.  

In TheDailyGold Premium...

TDG #905 included a company report on a company that has been hanging outside of our Top 10 but has top 10 potential. We own the stock.

In a flash update two days before #905 we noted this company could be one of the next to follow a group that has had very strong performance this year.

At current metals prices and margins, this company could have 10x potential over the next 5 years. If we get a continued big move in the metals over the next 3 years then it could be a 10-bagger in that time.

Majority of our stocks have moved and that's great. But we noted the one above and a few others that are buys right now. One is a developer that is breaking out and we love the chart. There are two others that are also breaking out with more upside.  

I am scouring the junior universe to find future Top 10 Companies and other companies that are undervalued with 5x to 10x potential. 

Thank you for reading.

I wish you all the best in 2024 and beyond.