MarketWatch quoted me a few weeks ago when I said that gold – because it was rising regardless of where the dollar, Treasury yields, or any asset was rising or falling – had become the “all weather” investment of choice. Now, none other than Mohammed El-Erian, writing in the Financial Times, agreed, highlights Brien Lundin, executive editor of Gold Newsletter.
We’ve been tracking a few specific technical indicators over the past few months that have given us a very clear and well-timed picture of where gold is about to go. In early July, I used these indicators to predict a major gold rally that no one else was expecting. Hopefully you took advantage of that prediction, but there have been others.
Two weeks ago, for example, I warned that gold’s correction had only a few days left to run. Then, precisely one week ago, I told you that gold’s next rally had just begun. Here we sit today, with gold over $100 higher, setting new price records well over $2,700 an ounce, and heading higher.
Even more exciting, silver has taken off with a vengeance, leveraging gold’s gains and, at one point earlier this week, trading nicely over $34. For those of us heavily positioned in gold mining and exploration stocks, the best news is that this sector — which until recently was still mired near 52-week lows — is now leveraging gold’s moves with gusto.
As for El-Erian, more important to me was the fact that he was commenting at all on gold. As I replied on X in response to my friend Jan Nieuwenhuijs’ post:
Further evidence that gold has become the new “it” investment came afterward, when a parade of other mainstream analysts jumped on the bandwagon.
At this point, things will begin to move very quickly. We’re going to see gold mining stocks soaring, especially as their earnings reports show massive margins and cash flows, and this will quickly trickle down into the high-powered juniors. I’m already seeing the positions in my personal portfolio start to move.
