Yesterday, we got the news that CPI prices for May jumped 5% on an annualized basis to show us that inflation is real and serious. Gold jumped on the news, but bond yields went down, telling us that bonds right now aren’t worried – or bond traders are not. Most of the financial media has followed the Fed’s lead in arguing that inflation is temporary and will go away and it looks like bond traders believe that line. However, companies are not acting that way. What does Jordan Roy-Byrne of thedailygold.com think? And more importantly for gold investors what is his outlook for gold and mining stocks now?
While I talked with Jordan about gold I forgot to ask him about silver.
On the charts silver actually has a better pattern for a big run now than gold does.
Jordan mentioned several resistance points he sees on gold, but when you look at silver there really aren’t any after the recent high as you can see from the silver chart.
Silver has been consolidating under the $28-29 zone now for a year. After that there really is no resistance.
So we could see silver outperform gold on the next precious metals rally – and mining stocks will go up more than gold too.
I have mentioned HL several times in recent weeks and it is lined up perfectly now for a nice breakout move.
And if you haven’t looked into my top stock pick for this month you need to do so now, because it is a new mining stock. For my post on it click here.
-Mike
