The volume now coming into gold and silver is huge. Yesterday I turned on CNBC for a few minutes as I was curious to see if they would say anything about gold.
Instead I saw Pony Tail on the screen and then some guy in a suit I never heard of talk about buying Microsoft.
It seems like they never have any new ideas on CNBC, but really they just talk about what their viewers own. That’s why they talked about Bitcoin nonstop in 2017 and now almost never talk about gold or silver.
The masses simply have no interest in it, but the big money has been accumulating and now the volume in it is exploding. That’s why it was six weeks ago that the giant commercials and producers inside the futures market went net long silver for only the third time in three decades.
Take a look at the volume in gold.
Notice how the on-balance-volume indicator is confirming the breakout, but check out the SIL silver stock ETF, which last week had one day in which it made a new record for one day of trading volume.
I do not really like this ETF, because it only owns a few silver stocks and it just makes more sense to me to own them individually, but obviously some people like it!
The big cap leaders have launched and are running away from people.
Look at AEM, which I own.
And also take a look at this stock which I had listed two weeks ago in my top five stocks to buy for Power Investor members.
This stock has left the station. I do own it, but I never would tell you to chase something even if I own it. It is too late to buy KL as there is no good entry point.
That is a problem people are now facing in this sector.
With gold and silver the simplest thing to do is just put a small portion into a portfolio to boost it as part of a diversification strategy. Metals did great from 2002 to 2008 and are starting to do so again as we approach the start of a new cycle of loosening in monetary policy.
That helps a portfolio and is why I own gold and silver myself.
Mining stocks is where more pure action is at.
And while many of the big cap big name ones are indeed running away there are still a lot of small cap junior stocks that are still consolidating and have not broken out.
In time these stocks will fascinate the masses just as Bitcoin did in 2017 and dope stocks do today.
But that moment has not even started yet!
And we are on top of it.
This is only starting.