“IT is happening in the gold market” is what we sense. The precious metals market did already qualify as one of those 3 top investing opportunities of 2019 (with palladium major ongoing rally) but now gold (GOLD) and silver (SILVER) are about to join the party. Especially gold’s attempt n°6 to break its stubborn 6-year bear market wall will be the one that will be the game changer as said in our 2019 gold forecast. If that is about to happen then silver miners are the place to be as per our silver stocks forecast 2019.
Followers of InvestingHaven’s research know by now that the number of articles we publish do reflect the potential level of juice. We have provided extensive coverage on the gold market lately which implies that there is an above average probability that the gold market will return above average returns.
Gold Prepares 6th Attempt To Break Its Stubborn Bear Market Wall
We saw a major opportunity coming in the gold market last year.
- Mid-August last year, in the midst of panic in the gold market, we published this market call Gold Has Bottomed In 2018, Higher Gold Price Underway. Do not underestimate the courage this requires. Going against the tide at a time the gold and silver prices are crashing to secular support levels requires not only courage but also comes with a responsibility. If anything a forecaster does not want to make a fool of himself.
- When we wrote the original version of our gold price forecast (link in the intro above) in September we saw a cup-and-handle pattern morphing on gold’s chart.
Guess what, the cup and handle not only materialized, but is also complete now.
Last summer we wrote “The pattern is likely unfolding on gold’s chart is a long cup-and-handle pattern in the context of the 7-year bear market (which is about to ‘celebrate’ its 7th full year on September 6th). The bear market may be ending with this huge cup-and-handle spread over +4 years. If this is the dominant pattern it would suggest there is a little bit of downside to the $1200 area after which the rally to $1375 will start and will get followed by the long awaited breakout by gold bulls.”
Time for the next chart pattern.
We now see attempt n° 6 for gold to attack this giant bear market wall which is represented by this horizontal red line at $1375 on below chart.
Gold: This Time Is Different
Why do we think ‘this time is different’? Why do we think gold will succeed in breaking through this wall!
Because of 2 reasons:
- Momentum is building up as all sellers have been shrugged off at lower prices. This is what we read in the series of higher lows combined with the cup and handle.
- Our gold leading indicators are all supportive of higher gold prices. Especially the COT report leaves much room for upside price pushes.
Readers should not worry about last week’s mini sell-off when gold retraced from $1350 to $1325 in 24 hours. This 2 pct retracement is a blip on the chart, not visible at all on below chart even. If you compare this with the retracements during the 2016 rally (Jan till July) it really is invisible.
Needless to say our 3 top gold miners will do extremely well.
If and when gold breaks through $1375 we will see an acceleration because the whole world will start realizing how bullish gold is. As per our 100 investing tips for long term investors the small minority of smart investors are already invested in the gold market, but the vast majority will move with (significant) delay). As the herd enters the gold market the price rise will accelerate only to peak. At that time InvestingHaven followers will be taking profits.
That’s how we follow the pulse of Mr. Market. That’s how we want to be positioned before financial media and social media ‘discovers’ the next big opportunity.
[Ed. note: As of this week we will provide in-depth analysis to our ‘free newsletter’ subscribers. We will bring premium content with specific (gold and silver) investing tips on a weekly basis, mid-week, free of charge. We will do this for 4 to 6 months. Subscribe to our free newsletter and get premium (gold and silver) investing insights in 2019 for free. Sign up >> ]
