I’ve been talking about gold $1750 as a critical pivot point for the gold price for weeks now. I was saying that once it clears that level then finally buyers would start to come in. It got above that level last week for a moment then dipped Monday only to rally back up towards it again yesterday. Check out the chart.
This remains one of the easiest buy points on gold and mining stocks I have ever seen line up, because it is coming after a double bottom. One can put stops in the metals positions one buys below the March lows for an easy safe entry point. Despite that there is almost ZERO talk now gold, silver, or mining stocks anywhere.
Turn on CNBC and see how many hours it takes before you’ll someone mention a mining stock. Then let us all know, because I don’t want to try it, because it could take days.
I fear that when gold came back below $1750 it simply made even more people lose interest in it and give up. I think this is still a great buy point, but it might take gold going above $1800 to start to bring people back into it now. There are zero mining stocks positions in the Robinhood Top 100 list.
They are missing the opportunities in mining stocks lined up now, such as Newmont Mining, which pays a 3.53% dividend.
Look at the great chart pattern now on NEM, with support at $60 and resistance around $63.40. The NEM/GDX relative strength ratio has been in an uptrend since October to tell us that shares of NEM are outperforming the GDX ETF. That means its leading the sector. As far as big cap mining stocks go it’s probably my favorite one that I own right now.
Disclosure: Mike Swanson owns shares of Pacific Ridge Exploration. Because Pacific Ridge Exploration is a small cap stock with a market cap of less than $100 million he has put himself in a trading blackout on the stock and will not buy or sell a share of it for at least 30-days from the date of this post (04/04/2021). Wallstreetwindow.com, is owned by Timingwallstreet, Inc., which is being compensated by a third party (Leadgopher LLC DBA Pinnacle Ad Network) to conduct an investor awareness advertising and marketing campaign for Sonoro Gold Corp. This third party paid Timingwallstreet Inc., $16,000 to produce and disseminate this and other similar articles and send traffic to them through paid advertising campaigns for 30-days from the date of this post (4/04/2021). This compensation should be viewed as a major conflict with our ability to be unbiased, more specifically: This communication is for entertainment purposes only. Never invest purely based on our communication. For more on trading risks read our policy statement by clicking here.