Good Morning!

Gold & Silver remain in a correction, and one that could evolve into a bullish consolidation.

Same for the miners and juniors. 

In today's email, I share 5 Gold-related charts that color my current views. 

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) Gold's Place Relative to History

No, Gold is not at the start of a blowoff like in 1979. 

But it could be mirroring the cyclical surge of 1972-1973. 

Remember, Gold is only 20 months into the cup and handle breakout. Breakouts from major bases lead to bull moves over many years. 

A very strong move in a short amount of time runs the risk of a cyclical bear, like began in 1975. 

The 1972-1974 move was incredibly strong and therefore ran for only 3 years. 

A duplicate move today would run for another 18 months at the most.

2) Gold's Post-Breakout Correction

The first significant correction following the 2005 breakout was in 2006. The first two corrections after the 1972 breakout were in 1972 and 1973.

In the chart below we plot an average of those 3 corrections and an average of the two corrections in the early 1970s (1972 & 1973).

Those are plotted on the scale of the current correction in Gold, in black. The data is daily closing prices. 

My own view is the combination of 1972 and 1973 is the best comparison. 

3) Gold is Breaking out vs. Bitcoin

Gold vs. Bitcoin is Beginning a SECULAR Turn. 

Gold is breaking out of a nearly 2-year-long head and shoulders bottoming pattern vs. Bitcoin. 

This is potentially quite a bit more significant bottom than the rough double bottom of 2021.

As of a few months ago, there was nearly $4 Trillion in Crypto. 

How much is going to move into Gold as Bitcoin and Crypto endure a bear market? 

4) Gold All-Time High Breakout Analog

Although I may obsess over corrections and the risk of a deep correction, I buy, hold and trim and urge others to do so. 

That is how we will make the most money and keep it. 

Gold is in its second biggest breakout move in its history. 

Below we plot how far an average of #1 and #3 would go on the current scale. That is $6900/oz 15 months from now! 

The closer we get to $7000-$9000, if it follows this path, then the closer we will move to trimming aggressively. 

Let's hope Gold goes sideways into 2026 as it would keep us on the Buy side for longer.

5) GDX Advance/Decline Line

Turning to the stocks, we see that the GDX Advance/Decline line is showing a positive divergence.

It made a higher high days ago, while GDX was not even close to making a higher high.

This does not signal an imminent end to the correction, but it is a very good sign. The advance/decline is a trusty leading indicator.

Summary

Gold remains in a correction and consolidation that could continue for several more months.

Time is needed to setup the next advance, which based on history could put Gold near $7000 in only 18 months. 

Gold breaking out against Bitcoin signals a potential new source of capital inflows for Gold and precious metals.

Thus far, the GDX advance/decline line, a reliable leading indicator, is sporting a strong positive divergence. This signals a broad relative strength for miners, even as they correct. 

In TheDailyGold Premium....

TDG #960 was 14-page update.

TDG #961 was a 15-page update.

TDG #960 included a report on one of our latest buys. 

Considering the NPV estimates from an analyst and myself, the company was trading at less than 0.08x NPV.

It has a project that is strongly economic and is a sure-fire takeover target. (Two things changed since 2024).

If acquired at the average valuation of developer takeovers (at current margins) it would have 5x upside. 

Value is out there. We do the work to find it. 

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.