The price of gold and silver look dead. It was just a few months ago when precious metals prices were going up like crazy. Everyone jumped on the bandwagon when it peaked. We saw those ‘gold through the roof’ and ‘all time highs coming’ headlines again. That’s when we said SELL, and we wrote it to 10,000 followers in Investing Opportunities #7: Silver Exit Plan vs The Next Sector That Might Heat Up. A few weeks later many investors were left with hope. That’s when we wrote our new annual Gold Price Forecast as well as our Silver Forecast both in a brand new format. Must read forecasts, absolute top notch as it incorporates our decade long experience and research. Right now, as everyone seems to be focused on so many other sectors and markets, and literally forgot about the existence of precious metals, we are close to firing a MEGA BUY alert to our members.
Why are we close to becoming excited about precious metals? Prices of gold and silver are going nowhere, there is no rally, there is no breakout, there is nothing, absolutely nothing happening in precious metals prices.
While that is absolutely true at this very point in time we would argue there is a high probability of a reversal pattern visible on the gold as well as silver price charts.
The gold price chart is even in the 3d consecutive day of a break out of its falling channel that started on the day we flashed our silver sell alert to our freemium members (see intro).
The silver price chart is inches away from a breakout as explained in Silver Price $17.5 Is An Important Bullish Breakout Going Into 2020. Note that the breakout price comes in at $17.35 in the meantime. Silver is very, very close to testing this level.
But what makes us really, really excited is precious metals stocks. They broke out from their falling channel, and might be leading the way for the precious metals space to move higher, similar to the last days of May of this year!
Precious metals stocks leading the rest higher, great!
Moreover, nobody is paying attention right now.
What a great setup, a recipe for potential fireworks.
Below are the charts of precious metals stocks, both the GDX as well as the juniors GDXJ.
The GDX already broke out this week, and is in the 3d consecutive day in breakout territory.
More importantly the GDXJ also broke out this week, and looks stronger than the GDX. This means that this market is characterized by ‘risk on’ (juniors being more solid than their larger peers).
The GDXJ is also in the 3d consecutive day in breakout territory. Look how solid this breakout looks, and also see how this comes after a reversal pattern indicated by a multi-bottom formation on the green line.
We are about to flash a major buy alert on our favorite precious metal stock to our freemium members! We see an upside potential of 70% in a timeframe of 3 to 6 months.
