Good Morning!

The correction in Gold & Silver is here.

Below we provide immediate historical perspective.

In addition, we share a few charts showing how far this secular bull market has to go.

Finally, we end with a new Silver analog chart. 

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

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1) Gold: First Post-Breakout Correction

Gold has begun its first major correction since the major breakout of March 2024. 

Gold has had three major breakouts in its history. 

1972, 2005 and 2024 

The arrows show similar points on this monthly, historical chart.

2) Gold All-Time High Breakout Analog

There are numerous similarities to 1972-1973. It has been the best fit for Gold, which has lagged it a bit. 

That's a good thing. On the current scale, the 1972-1973 peak was near $6000 before it corrected 28%. 

Gold is not as extended this time. 

Its going to correct more than 10%-12%, but nowhere near 28%. 

A more precise fit for this Gold move is the 1972 breakout and a combination of the 2009 and 2005 breakouts. 

That is the middle line in the chart. 

That line, along with the other, show a 5 month correction. 

The middle line (the precise fit) reaches $7600 in 16 months!

3) Gold vs. S&P 500

The ratio closed today at 0.61. A move beyond 0.65-0.70 would mark an extremely significant breakout, which we will discuss in the future. 

But zoom out. 

For the past 135 years we see most peaks around 4-5. (In weekly terms the 1980 peak was 7). 

The S&P is at 6700 right now. 

Take 6000 and a ratio of 4. Or 5? 

This move has a really long way to go.

4) Gold vs. Monetary Base

The secular bull markets during the Great Depression & 1970s ended with the Gold price backing over 100% of the Monetary Base. 

Today, 100% = nearly $22,000 Gold

Bonus: Silver All-Time High Breakout Analog

Silver has three times broken out to a new all-time high.

The last two weeks (weekly data) marked the fourth.

The chart plots the performance of Silver during the three breakouts.

In every case Silver essentially doubled within a year. 

In TheDailyGold Premium....

TDG #957 was a 22-page update.

It contained quite a few charts.

We also provided upside potential estimates for 5 of our Watch List companies.

One company is a producer with a chance to double its production over the next 12-18 months.

At $4000 Gold and current margins, the company is potentially trading at barely more than 1x 2027 cash flow. There is some risk but its mostly priced in.  

Another company we teased last week, could have 4x upside over the next 12-18 months if its acquired for an average developer valuation. 

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

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Thank you for reading.

I wish you all the best in 2025 and beyond.