Good Morning!

Gold & Silver formed bullish hammers yesterday and mining stocks rebounded. 

So, an oversold bounce has likely begun.

Stepping back, I reiterate the importance of understanding that the 1960s and 1970s is a better comparison for where Gold & Silver are today and not the 2000s. 

The majority of the analysis I see focuses on the 2000s and ignores the 1970s. 

Understanding the 1970s could help us decipher the evolution and end of the current correction in Gold & Silver. 

The best way to mitigate the risk of sector corrections is to buy the right companies and at reasonable prices.

To learn which juniors we like best and have 5x to 10x upside potential, subscribe to TheDailyGold Premium 👇👇👇  

1) Secular Bear Market in Bonds

Excluding recent years, the only secular bear market in Bonds over the last 100 years was during the mid 1960s to early 1980s. 

The Gold bull markets of the 2000s and 1930s co-existed during secular bulls in Bonds. 

The current secular bull market, like the one in the 1960s and 1970s began with capital flowing out of Bonds and into, primarily precious metals, but also Stocks. 

Don't forget, Bonds is the largest asset class. 

The secular bull market will kick into high-gear or pass its halfway point when US Stocks fall into a secular bear.

2) Gold New All-Time High Early in Bull Market

Gold's bull market began in the early 1970s with the Greatest Breakout of All-Time. It ran for another 8 years. 

Gold's new secular bull market began at the end of 2023 with the move to breaking out of its 13-year-long cup and handle pattern. 

This is when Gold's new secular bull market began in real terms. 

Not in 2016 or 2018. Numerous other data points support this view. 

The 2001-2011 bull was much different as Gold climbed out the basement for years before making a new all-time high. 

Then it dropped 30% in the GFC. Once it recovered and made new all-time highs again, the clock on the secular bull was ticking.

3) Silver New All-Time High Early in Bull Market

Silver never made a new all-time high during the 2001-2011 bull. In fact, the secular bull market peaked at the old all-time high. 

Silver's first new "modern" all-time high was in 1967, which evolved into a mania in junior Silver stocks. Silver surpassed its 1920 peak then, but not the Civil War peak. 

Silver broke the Civil War peak and 1968 peak (around $3/oz) in 1973. 

It exploded 16x over the next +6 years. 

That breakout was relatively early in that secular bull. 

Silver has already made a new all-time high in daily, weekly, and quarterly terms but not yet monthly terms. 

We see this secular bull market running into the 2030s, which means there is plenty of time left for Silver to make that 1973-1980 run.

4) Gold as Reserve Asset is Growing

Chart from @JanGold_

From 1971-1980, Gold as a percentage of International Reserves increased from ~38% to ~65% of reserves. 

During 2001-2011, there was only a minor increase after the GFC. 

Now, Gold's share is increasing materially. It has doubled in the last 10 years, to over 20% at the end of 2024. 

As of 6 months ago, it was 24% 

This has a really long way to go to the upside.

Summary

Everything points to the 1970s as the best comparison for Gold & Silver. 

Hence, we should focus on that period for guidance as to how the current correction will develop. 

There were fewer intermediate corrections in the 1970s than in the 2000s. 

But the moves were sharper in both directions. 

Excluding the cyclical bear market (1975-1976), Gold endured corrections of 28%, 23% and 20%. 

These corrections and "near" tests of the 200-day moving average were excellent buy opportunities. 

One could be coming over the weeks ahead.

In TheDailyGold Premium....

TDG #958 was a 19-page update.

It contained quite a bit of subscriber Q&A.

We also provided support targets for the stocks we own and stocks that are on our watch list. 

We will continue to uncover quality juniors trading at excellent values and sporting 5x potential over the next few years. 

What are people saying about TheDailyGold Premium

right now?

Thank you for reading.

I wish you all the best in 2025 and beyond.