Tuesday, May 9, 2017

The Precious Metals Market Looks Better Now (At Last)

The precious metals market is probably bottoming. Generally, the best entry points are when this catastrophic correlation between gold and the precious metals stock market (represented by GDX, for instance) stops working*.

* - I mean a pattern where gold goes, say, 1% down with GDX dropping 3%. And then again and again and again...

Look at these two charts below (the upper panel shows GDX and the lower one gold) in an ultra-short perspective:

source: stooq.pl

It looks like the market is sending a positive signal for gold bulls (at last). Since May 4 gold prices have been going down but GDX has chosen the opposite direction (look at two red arrows). In the past such divergencies were very promising...


  1. Tracciando il premio o sconto sul commercio di un fondo chiuso come CEF possiamo avere un idea del sentimento rialzista o ribassista sui metalli preziosi.Attraverso la % Premium/Discount ?

  2. Replies
    1. Alberto,
      Yes, yesterday CEF was trading at a 7.2% discount to its net asset value. It was a very large discount showing massive pessimism about gold / silver prices.

      It was like buying gold at $1,133 per ounce, instead of $1,221...

    2. Grazie. Come al solito sei molto chiaro.

  3. ho guardato Phys e lo preferisco a Cef.....

  4. Very helpful suggestions that help in the optimizing topic,Thanks for your sharing.