Good morning to you.

What the hell happened last week?

From an imminent breakout to potentially the single worst week for juniors in at least 7 years and probably 12 years.  

I try to explain and give key levels in this article. 


Elsewhere, Steve Saville writes about the Gold/Silver ratio approaching a 300-year high and what it means for the macro landscape. 


I have seen and tried a few of the news letters. Yours is by far the best, yours is the only one that really gets the technical analysis down. Fundamentally I really like your picks they are all low risk minimal downside with huge upside. I have found some of the other news letters pick a lot of risky exploration stocks or they simply have far to many companies. You seem to sift through the best and recommend a simple more condensed list with big upside.
 

Below we plot an updated analog, comparing Gold from 1996 to Gold from 2012. 

Big picture, the best comparison is the early 1960s. But Gold didn't trade then. On a cyclical basis, the 2000s is a reasonable comparison considering the 1996-2000 bear was similar to the 2011-2015 bear. 

Gold surged above the analog over the past few weeks. The next corrective low for the analog is $1476. Then it runs to $1800 within the following 6 months.



 


This next chart is extremely important. 

To see a real bull market in precious metals we need these ratios to break up. It would signal capital moving out of stocks and into Gold and gold stocks. That would give this fledgling bull a significant boost.

The Gold to S&P ratio is almost there. Could this corona virus be the trigger for these ratios breaking above resistance? 




 

I’ve been reading JRB for over 12 years and a subscriber for 2 years. Excellent, outstanding honest service, best investment newsletter I’ve ever made (and I’ve been through many). My only regret is not being more patient and listening to JRB more closely!
 

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Moving onto TheDailyGold Premium...

My how things can change in only one week. 

In TDG #633 we looked at our holdings and top watch list holdings in terms of market cap & current cash. Within the juniors we follow, those with weak cash positions (and needing to raise relatively soon) did not rebound as much as others did on Friday.

Simply put, if everything retests the low on Friday or at least tries, the safer buys are the more cashed up companies. However, those other companies have potential for bigger rebounds. Catching their bottoms will be more tricky. In any event, look to buy fishing line declines. 

The bad news is the technical damage pushes out the breakout as it will take to recover from. The good news is, there will be plenty of 3 to 5 baggers and more. 

For those with cash, now is the time to start putting it work and especially when the juniors try to retest Fridays lows. I have some cash but could have had more if I trimmed a few more positions.    

Let me help you find the big winners of 2020-2021. I'm focused on finding stocks that have 3x to 5x potential (and more) over the next 12-18 months.

 

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.

Contact Us: Email: jordan@thedailygold.com