Good Morning!

I maintain that Gold and Silver are in a correction that will continue.

But other than a few tiny trims, we have held onto our stocks.

I sensed that the stocks could outperform during the correction. 

Select stocks and many in our Top 10 have been acting quite well.

Trading in and out rarely works. I have learned that too many times. 

1) Record Number of Fund Managers Think Gold is Overvalued

The Bank of America Fund Manager Survey shows the highest amount of fund managers in 18 years think Gold is overvalued. 

Keep two things in mind here. 

First, the survey dates back to 2008. So, 2008-2011 and 2024-2025 are the only points during which Gold was in a secular bull market. And those are the points that need to be compared to today. 

So there is not enough data for a proper comparison. 

Second, in a secular bull, sentiment data like this will run hot. 

October/November 2024 had one of the highest readings ever. Gold corrected less than 10%, then exploded higher in early 2025.

2) Gold Managed Money Positioning is Down 43% 

The net speculative position in Gold has decreased from 340K contracts down to 191K contracts. 

The Managed Money category is essentially Hedge Funds.

They have cut their bullish gold bets by 43% since January!

A healthy amount of speculation has already been removed from the market.

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.

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

3) Gold ETF Holdings

Gold ETF Holdings perked up in recent months but have come back in recent weeks. 

The Gold to S&P 500 ratio is a strong indicator for ETF Holdings. 

Its very encouraging how they remain well below the 2020 peak. 

Reflects that the move out of Stocks and into Gold has barely begun.

4) Gold Market Cap to US Equity Market Cap

This is from Ronnie Stoeferle and the In Gold We Trust Report

A proper look at Gold's value has to go back 100 years which encompasses multiple secular peaks & secular lows. 

There are so few charts like this and that's why they are extremely valuable. 

The message: Gold's secular bull market is in the early innings.

5) US Gold Reserves as % of Fed Balance Sheet

Love these 100-year-long charts. 

Current value is around 13%. 

1934 peak: ~100% 

1980 peak: ~110% (almost)

In TheDailyGold Premium....

TDG #935 was published Sunday.

Here is part of our update summary for TDG #935:

Precious Metals sold off last week but the miners ended the week with some signs of accumulation. We could see a bounce to start this week and that is already happening in the overnight session, on the back of the US Credit Rating downgrade. The correction will continue but perhaps more so in terms of time than price.

The strength to start the week has exceeded our expectations.

Buy, hold and trim. And buy the right companies.  

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Thank you for reading.

I wish you all the best in 2025 and beyond.