We provide a lot of coverage of the precious metals sector with a good reason. This is setting up to become one of the TOP 3 investing opportunities of 2019 which will provide mega returns. We are very, very close to this point. As per Tsaklanos his 1/99 Investing Principles investors should focus on a very small minority of sectors that will provide the vast majority of returns. If gold and silver miners continue to trade for 5 consecutive days and 3 consecutive weeks above today’s price level they will confirm their breakout. Watch our selection of best gold stocks (GDX) as well as silver stocks (SIL).
The long term gold and silver miners chart, the HUI index embedded below, is one of the most impressive charts at the time of writing. This one chart, without any fundamental precious metals miners news, is sufficient for investors.
The long term HUI chart on 20 years, one of the very impressive long term gold market charts, shows a breakout scenario. Today, Tuesday March 26th 2019, is the first day of the breakout.
We want to see 5 consecutive daily closes above 177 points, combined with 3 consecutive weekly closes above 177 points, for a confirmed breakout.
What does all this mean? Why do we stress this word ‘breakout’?
The chart below makes our point in a visual way. This important event called ‘breakout’ represents a turning point: from an 8-year bear market into a new bull market. This is crucial, this is a game changer, this is a potential profit machine.
Gold and silver miners are known to be ultra volatile, in both directions. Once they start trending they move very fast up or down.
Although the HUI index will not rise right away from 177 to 600 points, their former highs, we do expect a fast move higher. In general, a new bull market in its early stages has several rallies followed by sharp retracements. The rallies may not all be impressive, but some of them will be very powerful.
Overall, this chart setup is impressive, because of the secular nature of the turnaround that is in the making.
Note that First Majestic Silver (AG) is our favorite silver stock. It already broke out, it is among the few silver miners to already officially break out.
