Tactics For A Gold Price Pause
Contributed Opinion

1. Stewart Thomson: I, or members of my immediate household or family, own securities of: GDX and SGOL. My company has a financial relationship with: None. My company has purchased stocks mentioned in this article for my management clients: None. I determined which companies would be included in this article based on my research and understanding of the sector.
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Are You Prepared?

On Tuesday of this week, I told my newsletter subscribers to prepare for a fiat price dip of about 5%-10% in the price of gold.

That dip is in play now.

Gold is a supreme currency, so these types of price sales need to be bought with a level of aggression.

They are bought regularly . . . by hundreds of millions of Chinese and Indian citizens, and by a smaller number of very savvy Western gold bugs.

Here's a key chart (using the SGOL ETF) for gold: 

The price surged out of a beautiful ascending triangle, and the target zone of about $35.50 has been acquired. 

A dip to the breakout zone would be healthy and normal. What if that dip doesn't happen and the rally resumes from here? Well, that's why supreme money enthusiasts hold large core positions in this, the mightiest metal!

The larger miners (intermediates and seniors) tend to follow the gold price action quite closely, but many of the smaller ones can continue to rocket higher even during a substantial dip for gold.

On that note, here's a look at one of them, Grid Metals Corp. (GRDM:TSXV; MSMGF:OTCQB), aka "Kid Grid": 

There's inverse H&S action in play and a major trendline breakout.

The company seems to be coming alive since their TECK deal came about. The global governments' rush to protect strategic metals could also benefit investors in Grid.

While gold and the big miners pause, another interesting play is Klondike Gold Corp. (KG:TSX.V). Here's a nice view of the daily chart: 

As the name suggests, it operates in the Klondike. Excitingly, the stock has the same ascending triangle pattern from April that was showcased by gold and. . .

Klondike's breakout is just occurring now.

Also, here's a look at the weekly chart: 

A nice inverse H&S pattern is in play. This is definitely a "ten-bagger" candidate, and at 12 cents a share, investors are getting in on the launch pad, rather than late in the journey.

Here's a look at another interesting junior, GoldMining Inc. (GOLD:TSX; GLDG:NYSE.American): 

The company operates in Peru, and this monthly chart is in rough sync with the CDNX; there are key lows, roughly in 2015, 2020, and recently.

A surge to $5+ is indicated by the large base pattern.

At this point in the junior mining cycle, my suggestion to view both the long-term and short-term charts first. . .

And then get into visiting the company's properties, studying the drill results, checking the directors, etc., and here's why I suggest that approach:

All boats get carried higher in a rising tide. It's more important right now to own many junior miners that rise with the rising CDNX index tide than rise more than the CDNX. 

Aggressive stock picking is best reserved for a down market for the CDNX. It's the same mantra that can be applied to the GDX ETF; the ETF is up over 100% in 2025. Trying to make more than 100% while risking making only a little bit or nothing at all makes little sense.

For the juniors it's important to own a group of stocks that have chart patterns similar to the CDNX. It shouldn't matter whether a stock goes up 280%, 300%, or 320% if the CDNX goes up 300%.

In the current market, what's most important is that investors own a group of stocks they are comfortable with. Those stocks may or may not outperform the CDNX in the short term, but investors are sure not to be shaken out on the inevitable pullbacks and dips that will occur in the years and decades ahead.

In a nutshell, It's a gold and gold stocks bull era.

All aboard!

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