Links of the Week...

Falling Yields a Catalyst for The Catalyst

Why a decline in the 2-Year Yield is a catalyst for the first rate cut which is of course a catalyst for bull moves in gold stocks.

Interview: Relating Moves in Bonds, US$, & Stocks to Gold

How are these markets and asset classes individually & together affecting Gold. 

Yield Curve Inverts, Avg Returns, Recession Risk, Rate Cut Probabilities

What does the inversion mean for stocks, the economy & the Fed?

The US$ & Relative Equity Performance

What could a decline in the buck mean for global equity performance?

Chart 1: Gold vs. Currencies

We plot the Gold price in a number of currencies. 

Gold/Euro is the key as the Euro comprises almost 60% of the dollar index. Gold is bullish against the various currencies.

Chart 2: GDX w/ Indicators

We plot GDX along with its AD Line, the percentage of HUI stocks above the 200-dma and then two ratios: GDX/S&P, GDX/Gold.

GDX this year failed at its 400-dma then went above it and successfully retested it a few weeks ago. Its only 1% from the February high. A 7% advance takes it to strong resistance at $25. 

The A/D line has made a higher high already, and so too has GDX/Gold. 

 

TheDailyGold Premium #614

TDG #614, a 26-page update was published and emailed to subscribers on Saturday night. 

The update included a report on a company we think has a chance to become the next Mariana Resources, a company that was acquired after making a major discovery in Turkey a few years ago. 

The sector is looking stronger now but there are plenty of stocks presenting great entry points.

One of our largest positions is a company that was a big winner in 2018. If you are looking for a safer junior, this is it. It just corrected 22% and has formed another higher low. How often can you buy a great stock at 20% off? We expect it to be acquired in the next 12-18 months.

Last week we noted that our favorite explorer will be drilling both its projects over the next 3-4 months. And they have the cash to follow up after the summer. At the sector top in 2016 these two projects had a combined value of US $200 Million. This company last week had an enterprise value of only US ~$20 Million. Now its closer to $23 Million as the stock appears to have put in a bottom. 

We have another explorer with a project with huge potential and the stock is just coming off its low. We'll tease it more next week. 

Consider a subscription as we can keep you abreast of sector developments and get you invested in the companies with 3x, 5x and 10x potential. 
 

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You have an extremely informative, level headed outlook and approach to your investing and I have enjoyed your weekly observations and comments. Especially your insight to questions you receive from your subscribers.


I learn more about what to expect in the PMs from your newsletter and updates than just about any other source. I doubt there is another one with a better record for accuracy and objectivity on the PM markets.


Jordan has displayed excellent short and intermediate term technical analysis, primarily in precious metals of course but he has also been able to apply his skill to other areas as well - proving he is a master of this difficult craft. I have appreciated and benefited from following him.


You are 1 of very few out there or maintains your integrity with what you do. I admire that.


"I am simply a pure market-timer for a broad basket of gold stocks and precious metals. Jordan, on the other hand, has provided superior STOCK-PICKING abilities over the longer-term. I am familiar with most gold stock subscription services over the past 30 years. I rarely provide endorsements of any kind, but Jordan's ability to analyze individual gold/silver stocks has been among the top 5 services over the past decade. First and foremost, I respect his integrity. - Dr. Jeffrey Kern, SkiGoldStocks.com

 

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Thanks for reading. I wish you all great health and prosperity!
 

-Jordan

 

Disclaimer: This newsletter is intended for informational and educational purposes only and should not be considered personalized and individualized investment advice. Investment in the precious metals sector contains significant risks. You should consult with an investment advisor and do your own due diligence before making any investment decisions. This email may contain certain forward looking statements which are subject to risks, uncertainties and a multitude of factors that can cause results and outcomes to differ materially from those discussed herein.