Gold Stocks: The Risk Of Being Out
Contributed Opinion

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1. Stewart Thomson: I, or members of my immediate household or family, own securities of: GDX. 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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Stewart Thomson is no longer an investment advisor. The information provided by Stewart and Graceland Updates is for general information purposes only. Before taking any action on any investment, it is imperative that you consult with multiple properly licensed, experienced and qualified investment advisors and get numerous opinions before taking any action. Your minimum risk on any investment in the world is: 100% loss of all your money. You may be taking or preparing to take leveraged positions in investments and not know it, exposing yourself to unlimited risks. This is highly concerning if you are an investor in any derivatives products. There is an approx $700 trillion OTC Derivatives Iceberg with a tiny portion written off officially. The bottom line:  

Are You Prepared?

For gold, silver, and mining stock bugs, it's a bull era. In the West, mainstream media treats gold like a stock that can be used to make fiat money profits.

In the massively populated East, the citizens view (correctly) gold as the world's greatest currency, and feel they need to fight tooth and nail to get more of it.

Here's a technical view of a key zone where these savvy citizens would probably stampede into the gold market to buy: 

While gold can keep going higher against flawed fiat (and ultimately always will), if there is a pullback, supreme money enthusiasts should always look for a congestion zone as a potential price area to buy.

In the current situation, the symmetrical triangle fits that bill, and silver and miners can be bought aggressively there, too.

I like a three-point buy, with the first at $3500, the second at the triangle apex ($3350), and the third at the bottom of the triangle at about $3100.

Gold money enthusiasts should cheerlead the price higher, and hope another congestion zone forms at a higher price than $3500-$3100 . . . but be fully prepared, now, to buy the lower zone if there is a surprising dip into it.

Silver? Well, here's an interesting look at the ratio chart for silver versus gold: 

Silver is basing and showing bullish inverse H&S pattern action. This is a sign that inflation could return.

The only card the U.S. government really has (other than joining the war) to play against Russia in the Ukraine war is . . . oil. The action in silver could indicate that there are going to be tariffs on Russian oil.

Also, the Chinese government appears to be aggressively adding to its SPR while their US counterparts do little to nothing with theirs. At some point, that SPR has to be refilled to some meaningful degree… and that could help send silver to my next $80-$100 target zone.

Here's a look at the silver price in fiat currency: 

Since the inflation cycle began in 2020 (and should last until 2060), investors need to be open to monetary metal rallies pushing through former highs rather than tumbling violently down from them.

That should be the case here with silver around the $50 mark.

What about the miners? Well, here's one of the most exciting charts in the history of markets, the GDX versus gold chart: 

The massive base pattern suggests senior miners will create enormous wealth for investors over the next decade . . . and do it in the supreme currency that can only be gold.

The juniors are also looking fantastic. To view them in action via the CDNX index, please click here now: 

The index seems "eager" to push through the top of the H&S neckline zone, at about 1100. The target of the pattern is the round number of 2000.

Due to the mammoth size of the pattern (10 years of time!), much higher prices are ultimately likely, probably in the 3000-5000 range.

Basis what the GDX chart indicates, the CDNX could easily hit 10,000 before the inflation cycle peaks.

Here's a look at one of the more exciting component stocks of the index, Mako Mining Corp. (MKO:TSX.V; MAKOF:OTCMKTS): 

The stock is making endless highs. Investors who want in can buy with either a partial or full stoploss at about $7.75.

The company operates in Nicaragua, which isn't a jurisdiction like Canada or the U.S., but the company has a phenomenal project, and of course . . . no risk taken equals no potential gain!

Here's another miner of interest, Galleon Gold Corp. (GGO:TSXV):

This one has an attractive price of about 70cents and operates in Ontario and Idaho, two high-quality jurisdictions. Like most CDNX-listed miners right now, the stock has ten bagger potential.

In golden nutshell, the CDNX is poised to burst up from one of the greatest base patterns in the history of markets. The big risk for investors is likely being out of the market rather than in, and what rhymes with in . . . must be a very big gold bull era grin!

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