Gold & Silver: A "Perfect Storm"

brass metal frame

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This bullish momentum is likely going to continue this year, considering the actions taking place on the macroeconomic front.

So even though gold has been dragging a bit, and silver and the shares have been disappointing, don’t give up the ship. They’re set to rise a lot further and we believe your patience will pay off in a big way.

It's always good to start with the big picture of gold since 1967. You've seen this before, but we like to bring it up several times a year because the movements in gold are uncanny, and repetitive.

chart

The current bull market started in 2015 (eight years so far), and it became stronger since the November 2022 low. That is, gold has stayed near the record highs since then.

This alone shows the strength behind gold. It's holding near the highs, ready to jump when it's triggered. The 11-year high for this bull market is the 2026-27 area. That's coming right up. This tells us to have patience and it will be well worthwhile.

Current weakness is providing good entry points if you want to buy new positions. We're keeping our positions including ETFs such as VanEck Gold Miners (GDX) and VanEck Junior Gold Miners (GDXJ) — as well as Franco Nevada (FNV) and Newmont Mining (NEM), among others.

Meanwhile, silver — a sleeping giant — is holding quietly in a bull market uptrend, and it remains within a growing triangle. It's holding above its 2022 uptrend, in spite of overall weakness in the market.

But in a worst case, even if silver were to decline to the major trend, it wouldn't change the bullish outlook. Silver has great potential going forward in technology and in green energy.

Silver is a buy and hold for several years. If there is more weakness upcoming, buy more, including our holdings such as iShares Silver Trust (SLV) and miner Pan American Silver (PAAS).


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