Gold Breakout?

Sticking to it. I gave up on the “to the moon” scenario a while back and every time another expert is wheeled out to tell us gold and/or silver is “poised for a moonshot” I just smile and go about my business.

At this point I have no reason to change what I have been saying for for the past year or so. Technicals – they are all jacked-up. Fundamentals – they are all jacked-up. Mining sector – collapsing with no way out. Unless there are several major strikes made within the next two years the mining industry is going to have a tough time feeding the supply chains. So far none of the junior exploration mining companies have any large scale mines in their sights. Don’t get me wrong some of the junior miners and exploration companies have very promising properties coming online. What they don’t have is 10+ million ounce mine they are prepping for the next stage. What they don’t have is 20+ million ounce mine they are prepping for the next stage. The market could use several mines of this size but none seem to be on the horizon or in the immediate rearview mirror. This is what is needed at this point to feed the current demand and to satisfy any additional future demand.

Another “expert” is calling for “a big breakout in gold” and the “expert” sees gold sitting with it’s finger on the switch for the latest “to the moon” call. If we simply sit tight we will be right before you know it. It won’t be tomorrow and it probably won’t be this year, but within the next 3-5 years the mining strains, combined with undeniable geopolitical and economic factors will create a perfect storm for gold and silver. This is to say nothing of the fact that Russia, China, Iran and Turkey seem to be working day and night to hoover up all the gold possible. My guess is they are not acquiring gold for more trinkets.

While we wait for 2021-2023 here is a piece of the latest “to the moon” story.

Gold poised for big breakout amid looming economic downturn – precious metals expert

After the lengthy bear market, gold could pick up its bullish momentum again, according to VanEck International Investors Gold Fund manager Joe Foster who sees a coming breakout for the precious metal.