Bank Stocks Lead Gold Stocks Higher

Powell may have suggested to his “speakers” that less talk about the supposed benefit of higher rates for the dollar is the wiser plan of action for now. Regardless, with Powell at the helm, there’s no question that the Fed has been a lot quieter, and the gold price action has been very solid ahead of this Fed meeting.

What I’m looking for after the meeting ends is not a “free money to the sky” gold price super-surge, but more stability, more institutional money manager concern about the US bond market, and more talk about the potential for a reversal in US money velocity.

The big buy zones for gold stock enthusiasts are $21 and $18 on this GDX chart. Most individual gold stocks (with a few exceptions) track GDX, so when GDX reaches a key buy zone, investors can buy their favorite individual gold stocks at that point in time.

Investors who want to fully participate in the “Inflation Era” should have a portfolio of bank stocks (or ETFs for the sector) in one hand, with a focus on small banks. Those stocks are surging higher now and should accelerate their advance with more rate hikes and QT. In the other hand should be a nice portfolio of gold and silver mining stocks. The surging bank stocks bring immediate satisfaction and the surge to come in the miners will bring maximum satisfaction!

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