Gold Price Lows “Are In”

And silver is “poised for recovery”…

by Michael Ballanger via Streetwise Reports

With diesel prices into the stratosphere, one of the greatest arguments for owning mining issues is no longer a factor and that is what is weighing on the GDX and GDXJ ETFs these days.

Contrast that with gold bullion, whose chart looks not only fine, but it would also appear that the lows for 2022 are in:

With the U.S. dollar screaming through 105 recently, one might have expected even greater weakness than the $250/ounce thrashing it has taken since early March.

With the low of May 16 at $1,785 now well behind us, I see $1,885-1,890 as the next barrier.

Silver was added to the trading account on the recent break under $20.50.

So after taking a couple of body blows this month, we are poised for recovery.

Remember the immortal words of Richard Russell: “In bear markets, he who loses the least, wins!”

I save the best for last as the TSX Venture has lived up to its reputation as “NASDAQ North” where the TSXV is down 25.28% YTD while the NAZ is down 26.91% YTD.

Both of these exchanges carry speculative issues and are usually dominated by the retail trade.

I prefer resource issues over technology given that tech is coming off thirteen years of Fed protection while the same cannot be said for resource issues.

While I remain fearful of the deflationary impact of the pending Fed quantitative tightening (removing liquidity from all credit markets), many of the names I cover on the TSXV are actively exploring for gold, silver, copper, and uranium and since we are now in the seasonally-active period, positive drilling results should (in a perfect world) bring buyers to the table.


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