Gold recently tested its record high that was posted in August 2020. Gold shares also took off and so did many resource shares. Overall, it’s a full commodity bull market, asserts commodity sector experts Mary Anne and Pamela Aden, editors of The Aden Forecast.
This commodity move is being fueled by rising inflation with no end in sight. The Russian war has exacerbated the move in inflation with more uncertainty, and a run towards tangible assets and away from financial assets. This bull market in commodities was already under way and it’s poised to rise for several years to come.
With gold rising higher than silver, and gold shares rising more than gold, and seniors stronger than juniors, it’s telling us gold is king for now. It’s the ultimate safe haven and it's being confirmed by investors running to the safety of gold. Plus with senior miners strong than juniors, it's reflecting value over risk.
Also, senior miners are stronger than the juniors. The ratio has been rising for the last five years, and especially since last year, favoring seniors over juniors. But like silver, the junior's time will come, and they are rising selectively in the meantime.
Gold reached a low on September 29, 2021, which started the "C rise" that is still underway. So far it's up 20% in six months, but most of the risk as happened Since January 28, 2022. Since testing the highs on March 8 at $2,043.30, gold has been consolidating near the highs above $1,900.
This shows strength, and suggests the rise isn’t over yet. The fact that gold neared the record high makes it a great stage C rise. And if gold stays above $1900, the indicators could stay near the highs, like in 2020, and gold will still have an opportunity to reach record highs this time around.
Keep in mind, the upcoming decline (we call stage D) tends to be steep — but gold will remain bullish by staying above this average at $1830. The big picture is still wide open for an ongoing bull market super rise.
Overall, our gold shares are doing great. The best ones that recently reached new highs above their June 2021 highs are Royal Gold (RGLD), Newmont (NEM), Yamana Gold (AUY) and Franco Nevada (FNV).
For now, gold is stronger than silver. Gold could continue rising more than silver in the upcoming months. But looking out to the longer term, silver is poised to be the better one. And once the indicator reaches the high area, it’ll be the time to buy even more silver.
Remember the gold to silver ratio tells us which is stronger, but it doesn’t reflect if they are rising or declining. It simply means one is stronger or weaker than the other. Silver’s time is coming.
Two recommended silver holdings in our portfolio are Hecla Mining (HL) and Pan American Silver (PAAS). Silver's long-term indicator is impressive; it’s rising from the lows that tend to confirm a key bottom with a wide open upside. Silver is making its way toward the $30 level. Once broken, it’ll be off and running.
