Good Morning!

There have been some major breakouts in precious metals over the past few months.

Those include Gold breaking out against the 60/40 Portfolio and Stock Market, the inflation-adjusted Gold price breaking out of a 45-year base and various miner ETFs breaking out of 4.5-year-long bases.

But more breakouts are coming.

What comes next?

Gold & Silver vs. The Stock Market (S&P 500)

Yes, last month Gold broke out of a 4.5-year-long base against the S&P 500. That was very significant.

So significant that the ratio exploded up to test 11-year-long resistance before retrenching. 

It will take some time before the next breakout, which will have massive significance.

Closer at hand is the potential for Silver to break out from a 4-year-long base against the S&P 500. 

Gold Stocks vs. 60/40 Portfolio & Stock Market

Here we plot GDX against the 60/40 Portfolio (top) and Stock Market (bottom).

The weakness in Bonds is why the top chart is stronger and why the bottom chart has yet to rally up to resistance.

Both ratios broke-out to new 4-year highs last month.

But the real big breakout will be taking out the 2014, 2016 and 2020 resistance levels.

Sponsor Companies

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.

Click Below to Listen to Interview with GoGold CEO Brad Langille.

Calibre Mining (CXB.to, CXBMF) is being acquired by or merging with Equinox Gold (EQX.to, EQX).

The two companies have a combined market cap of ~US $5.00 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 in 2026. But given the debt load, any hiccups that require significant future capital investment will hurt the stock.

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

Inflation-Adjusted Price of Silver (Silver/CPI)

If you follow our work, you know that the gold stocks track the inflation-adjusted Gold price quite well. 

The same concept is true of Silver and silver stocks.

We plot Silver/CPI at the top with SIL, the silver stocks ETF at the bottom. Look at how they mirror each other!

The larger point is Silver/CPI is close to breaking out of a 12-year-long base!

4) Summary

There have been several major breakouts in precious metals.

It started with Gold in March 2024 breaking out of its 13-year cup and handle pattern.

Last month Gold broke out from a 10-year-long base against the 60/40 Portfolio. Several other breakouts followed.

That was just the start. Plenty more breakouts are ahead of us.

Most future breakouts revolve around Silver and secondarily the gold stocks. 

More capital is coming into the sector and at this juncture that benefits Silver and the gold stocks. And silver stocks as well. 

In TheDailyGold Premium....

In TDG #932 we updated our Top 10 Company Table and Watch List Table Notes, focusing on the upside potential in these stocks.

13 companies were covered.

We will also evaluate the potential of our Secondary Watch List next.     

These table notes assessing potential include important company information that help us arrive at our estimates. 

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Thank you for reading.

I wish you all the best in 2025 and beyond.