The title says it all, but here is a chart of the junior gold miners GDXJ vs. the technology stocks in the QQQ etf. The chart only goes back around four years, but the breakout is very clear, there is no doubt the trends have changed. It’s important to remember charts like this, when the inevitable corrections occur. Dips in miners should be bought, not feared.

ASM (Avino SIlver and Gold) is yet another example of a stock launching out of a support zone on a good earnings report, this one making new 52 week highs, and also a recent addition to our portfolios. Check out the chart below, ASM is also making new multi-year highs, and it has lots of room to run now, no resistance until the 2016 high up near $3.20/share (not shown on this chart).

We are starting to see huge spikes higher in various miners, as they report blowout earnings and free cash flow. No longer do they see all rallies sold down soon thereafter, these are trend-changing or trend-confirming moves, made with force. Below are two examples, HOC.L (Hochschild Mining, in which we just recently initiated a position, and EXK (Endeavor Silver), which has been a holding but added to it recently as well. Note the percentage gains in just one day, and the fundamentals only continue to improve for the next couple years or more. Considering the stock markets in general are very weak, imaginary clown tokens (cryptos) are in a bear market already, moving money into precious metals and their miners seems like the wise thing to do. As silver nears a significant breakout, there is still lots of upside for the group, but with moves like these, don’t take long to make up your mind. Best to get some exposure before they run away from you.

HOC.L launched out of a strong support zone, while EXK cleared any near term resistance. Yesterday was one of our best days ever for our accounts, I hope you get on board soon, too!

Lots of volatility in markets, with tech stocks and the S&P making new lows day after day. They will bounce at some point, but so far they remain extremely weak. Yesterday was difficult, as everything got hurt across the board, while mining share investors want to see relative strength vs the stock market. Today we have a sharp rebound in GDX, while the stock market, SMH (semiconductors), and MAGS (Mag 7 stocks) are in the red again, causing a breakout in the GDX:SPY ratio. It’s just another confirmation that a bull market in miners is under way. We might even short the SMH or MAGS into a bounce that eventually will occur, once the bounce looks tired, to be short tech against our gold and silver miners long.

I think CDE (Coeur Mining) dropping 33% after a a good earnings report, and with no particular bad news to justify the selloff, is presenting a low-risk opportunity to add to our positions in the $5.10 area. Just on the stock, not including $5 strike LEAP options we own, we are already up 81% on CDE, and that includes this recent brutal beating of 33%. I like the odds, so am very comfortable adding today, and still think this stock could easily triple from here. Once it gets going, it will be hard to buy, because it goes up just as fast as it comes down!

I recently picked up a few coal miners, realizing that they will likely take time to establish a new uptrend. Still, I can live with their fundamentals as they are, considering the substantial dividends they are paying, their profitability, and free cash flow. The charts were also sporting what looked top be false breakdowns last week, along with deeply oversold technicals. So far, so good. Here is the Coal etf, I picked up two Australian coal miners from its top 10 holdings, but my charting service isn’t letting me post charts on them, so you can do it on your platform. They are Yancoal (YAL.AX), and Stanmore Resources (SMR.AX).

Note they are in steep downtrends, so be careful with position sizing. I just think that coal will make a comeback, as the world is realizing a lot of the green movement is hype, and we still need a cheap and reliable energy source like coal.

The PSLV etf buys and holds physical silver for its shareholders, so buyers can own physical metal in their brokerage accounts, and as far as I know, its legitimate. They list the bars bought and sold each day for shareholders by serial number, and post the data on their website each day. On the other hand, many silver etfs, like the largest one defined by assets under management, is the SLV etf. Its volume os shares traded each day used to dwarf the PSLV, but more people all the time are coming to understand that funds like SLV don’t have to own the metal, they just try and track the price (until the don’t). Their prospectus is clear about this, so SLV defeats the purpose of buying silver in the first place. On top of that, since etfs like SLV are only supposed to track silver’s price, there is no guarantee that they will, and they make that clear as well. Seems to me, if one is a bull on silver, they would want their vote counted by taking some physical off the market and into their possession, or Sprott’s possession to hold and protect for them. This helps the price higher, because supply is reduced, but with SLV type etfs, if they don’t buy the silver, you don’t get to put your pressure on prices to go higher.

I mention this to help those that might not have read the SLV prospectus, please do so, you must realize that you don’t necessarily (probably don’t) own the metal you thought you bought. It looks like more people are understanding this lately, or maybe we are nearing a shock event. I’ve posted the charts of PSLV and SLV below, notice how SLV’s is relatively constant, while PSLV’s volume is exploding higher, in fact setting records many days over the last month. Spikes in PSLV volume only seem to occur near big market shocks, you will notice this if you find a chart that goes back far enough. Usually these moments are accompanied by big moves higher in price, such as the silver squeeze in 2021, and we also see the discount to NAV shrink at the same time, which is happening now. In fact, when we have lots of fear in the markets, PSLV will trade at a premium to it’s NAV, often with a sharp spike higher. These observations tell me something big is about to occur, others know about it, and are getting into position to own physical silver. Record volume more than doubling what has occurred in past events, and lasting a month or longer, are particularly noteworthy.

While gold continues to make new all-time highs every couple days, and we wait for the secondary groups to follow it to new highs, those being silver and the miners, I am posting a chart that also has me interested. This is a weekly chart of the URA etf, and while I won’t likely buy the etf itself (I make my own), I am interested in uranium stocks longer term. The monthly chart also exhibits a nice uptrend. I am not buying into the group just yet, since the sideways trading range is only just over one year in duration. With a weaker stock market and economy potentially dragging energy lower in general, or at least keeping a lid on prices, I don’t feel I need to be early on my purchases. If I do start a position, it will likely be in a physical etf like Sprott’s SRUUF and/or Yellow Cake (YLLXF), as they both trade at a discount to NAV, and have had recent breakdowns below horizontal support lines, that if end up holding, would be classic examples of “false breakdowns” and reversals.

In time, we will look back at today and realize how important it was. As I write this just after 12 pm, the SILJ etf already has close to four million shares traded, more than double the volume of a typical trading day. Gold made all-time highs again today, and most of out miners are up 7-10%, while getting back over all their moving averages on the daily charts. On top of it all, the stock market can barely stay in the green today, and the digital junk like bitcoin can only rise 1%. Once these two things start to drop, it will be icing on the cake, as miners are the strongest group by far today, and its still the seasonal strong time for precious metals, albeit the miners got a late start this year. Below is the GDX, screaming to anybody left that will listen, “I’m going higher!”. Add in the fact miners will start reporting all-time record earnings and cash flow in 2-3 weeks, and there is no telling how high they could fly.

Eye-opening chart as to how well gold has performed, in this case vs. the world’s largest safe-haven market, US Treasury bonds. It’s shocking to me that miners of precious metals are scraping all time lows as far as valuations versus the metals, while gold is performing as well as it is. It also might be time to consider owning some bonds, though I will stick to the metals and their miners, since bonds were in a 40 year bull market and the trend is not in their favor. Still, bonds can benefit from a weak stock market, which many believe is inevitable. Stocks are due for a large correction, but if the Fed keeps printing to keep assets afloat (inflationary), bonds should not rise as much as precious metals.