Good Morning!

In TheDailyGold Premium on Sunday I wrote to subscribers:

I continue to think the precious metals sector is approaching an interim peak......

The interim peak is important because then we can be on alert for an initial selloff and buying opportunity. That first selloff will be the best buying opportunity. Capital has only started to shift into precious metals and there is a very long way to go as our charts showed in the past few updates. This is only comparable to the early 1970s and early 2000s.

Tuesday's bearish reversal in Gold has confirmed the peak is in.

The next few months could be your last chance to buy some of the highest quality juniors at a reasonable price.

Gold Correction Targets

This is a weekly chart of Silver at the top and Gold at the bottom.

Gold has made seven major breakouts. 

The other six corrected to the 200-day moving average or slightly below. See the circles. 

Gold's 200-day moving average is at $2709. It will reach $2900 in June and $3000 in July. 

The vertical lines mark the tests after breakouts to new all-time highs. Silver really ran after those three tests. 

Can Miners and Silver Outperform Gold?

In the chart below we highlight two periods in which Gold corrected and consolidated for several months and miners, juniors and to a lesser degree Silver, outperformed. 

Gold made a significant breakout in early 2003, taking out $300/oz. Then it corrected and consolidated.

The Silver/Gold ratio bottomed during that correction and miners and juniors (GDXJ data in 2003 is my own index) made huge moves higher 

In 2009, Gold corrected and consolidated after rallying 40% to $1000/oz. 

The juniors, miners and Silver all front-ran Gold's eventual breakout of $1000/oz.

While both periods coincided with stock market bottoms, the unique performance is likely more related to the standing of precious metals. Both came after huge/significant moves in Gold. 

Sponsor Companies

Calibre Mining (CXB.to, CXBMF) has now been acquired by or merged with Equinox Gold (EQX.to, EQX).

The two companies have a combined market cap of ~US $5.10 Billion, but have $1 Billion in debt.

Each company is building its most important and lowest cost mine right now. Both are in Canada, where the Gold price is extremely strong. 

The combo could grow its production +60% from 2024 to 2026. 

The combined entity could generate EBITDA of $2.50 Billion at $2900 Gold in 2026. An 8x valuation is quite reasonable. 

In short, if these two mines have no major issues or significant delays and Gold continues to trend higher, the new Equinox should be a sector leader. But given the debt load, any hiccups that require significant future capital investment will hurt the stock.

GoGold Resources (GGD.to, GLGDF) is currently a small Silver producer with a pipeline of two development projects. Its CEO Brad Langille owns a large position in the company and has a very strong track record.

The company is attractively priced and in position to produce 9M oz Silver-equivalent/year in a few years, with another development project that could take it to 16-17M oz Silver-equivalent.

The stock is acting very well. On December 22, 2024 we called a buy on the stock at C$1.10. It nearly doubled before the current correction. 

For more analysis of these companies and many more companies, subscribe to TheDailyGold Premium.

3) Gold All-Time High Breakout Analog

This chart plots the three sustained Gold breakouts to new all-time highs on the scale of the breakout that began in March 2024.

Gold has followed the two averages very closely. They show a sideways move for nearly three months before surging much higher.

I think Gold could consolidate for longer. 

4) Summary

Gold has just made an interim peak and a test of the 200-day moving average is likely.

But remember this.

Gold broke out of a 13-year cup and handle pattern only a year ago. 

Furthermore, it just broke out against the 60/40 Portfolio only a month ago. 

Gold is in the early innings of a long and huge move as capital is only starting to shift from conventional assets towards Gold. 

This isn't 2008 or 1979. 

More money is eager to come into the sector. 

In TheDailyGold Premium....

In TDG #931, published April 20, included an updated company report on a Top 10 Company.

This is a larger junior that has some of the highest production growth potential among companies of its size.

We noted support targets if the stock were to correct. We did the same for our entire Top 10 and Watch Lists.

In TDG #928 & TDG #929 we fully updated:

-Top 10 Company Table

-Top 10 Watch List Table

-Secondary Watch List Table

These tables include important company information including market cap, cash/debt and 150-200 words of notes.

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I have purchased many newsletters over the past 15 years and yours is hands down the BEST, and for the most reasonable price!! Newsletter writers often either don't understand markets, market timing or charts and/or write way too much such that important conclusions or guidance is basically buried in details that regular people like me (who aren't geologists) can't decipher.... resulting in trying to find the gems of important information buried in mountains of verbiage".- TDG Subscriber

Thank you for reading.

I wish you all the best in 2025 and beyond.