Chart 2: Gold CoT
Here is the daily line chart w/ the 200-dma, 400-dma and 600-dma. At the bottom is Gold's net spec position against Open Interest.
Most peaks in the net spec position since 2000 have been around 55%. We should also note that during the 2005, 2007 and 2009 breakouts the net spec position was already high. It did not prevent breakouts from happening.
The net spec position is currently at 41%. It was 55% at the 2012 and 2016 peaks. It was 43% at the early 2018 peak.
TheDailyGold Premium #626
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We published TDG #626, an 18-page update on Saturday evening.
In this update we noted some negative developments from the end of the week action. These things suggest precious metals could weaken in the short-term. However, the historical data shows that gold stocks perform well after rate cuts. If the Fed cuts in July and then again in September, it's more likely than not that Gold will break through resistance.
That being said, we currently own only one company that requires higher metals prices. Should Gold breakout then we anticipate that will be the point when juniors, Silver and optionality plays outperform.
Last week we mentioned a turnaround play with insider buying that had bottomed. It continued to move higher this past week and there was more insider buying. We calculated that the stock could double from here. If Gold breaks through and goes to $1475, the stock could potentially triple.
In the update in the Q&A section we were asked our current top 5 buys. The above is one. Let me tease another. The stock is trading well off its highs but has built a base and has started to creep higher. This exploration play is owned by multiple majors, cashed up and is one of the most prospective plays out there. It ticks all the boxes.
Consider a subscription as we can keep you abreast of sector developments and get you invested in these kinds of companies with 3x, 5x and 10x potential. All of the stocks we own have upside potential in a stable Gold market. If Gold breaks higher, they all could fly. There are plenty of good buys out there.
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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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-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.
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