Good Morning!

I'd like to wish you all a very happy, healthy and prosperous 2025!

I focus entirely on gold and silver stocks and so do most in our industry. 

Naturally, we have a bullish bias.

The majority of the reasoning why gold stocks have sucked, is because precious metals were in a secular bear market.

When Gold breaks out against the 60/40 Portfolio, gold stocks, juniors, Silver, exploration stocks will be in a new, super bullish regime. 

But I want to discuss why the current setup in gold stocks is particular bullish in 2025.   

Super Bullish Technical Bases

The ETFs and mining indices are sporting multi-year technical bases.

GDX, XAU and GOEX (very similar to GDXJ) are showing 4.5 year long bases while GDXJ has a 4-year long base.

XGD, the Canadian GDX, is in a 14-year long base. In fact, GDX divided by foreign currencies looks very close to XGD. 

The breakout move, whether its two months away, nine months away or whatever....it's going to be explosive. 

Sentiment Indicator at 17-Year Low

Sentiment Indicators include surveys, polls and then real money indicators such as the one below. These real money indicators are the most meaningful and powerful.  

This excellent chart plots the amount of money in all gold stock ETFs divided by the amount of money in all stock ETFs.

It is at a 17-year low! It's much lower than it was at the 2016 and 2018 lows. And even lower than the 2022 lows! Gold stocks have made higher lows going back to 2022, 2018 and 2016.

Conclusion

The setup in gold stocks is nearly perfect.

They have a multi-year bullish technical base.

They are dramatically under-owned at this point.

Once the macro picture aligns, and that entails an economic downturn with accelerated Fed easing, the gold stocks will explode out of their bases. 

It is best to position in the quality companies that will lead the move to a breakout. You can buy some of them 20% to 30% cheaper than just a few months ago. 

In TheDailyGold Premium....

In TDG #913 we published an updated report on one of our top holdings.

This is a company that 3 years from now could generate nearly $700 Million/yr in cash flow if they execute and current margins remain the same. 

It's potentially a 5-bagger and that requires time and execution, but not an increase in the real price of Gold.

Other recent updates:

TDG #912 included a secondary watch list of companies that are future candidates for our Top 10 Watch List

TDG #910 included a full update of our Top 10 Watch List Table

TDG #909 included a full update of our Top 10 Table

We aim to find the companies that are undervalued now and have significant potential to add more value in the future. And that can be turbo-charged by a real bull market in the sector.  

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

With the sector in a larger correction, now is the time to subscribe to learn about these companies and buy them at very attractive prices. 

Thank you for reading.

I wish you all the best in 2025 and beyond.