Gold Breakout? by Rory – The Daily Coin
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.
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.
The prospects for beaten-down gold stocks are starting to look promising, he claims, citing geopolitical risk, uncertainty around the Trump presidency, and potential inflationary pressure.
“In the next year or two, we are going to be faced with an economic downturn and probably a general stock market downturn that will bring out a lot of the warts in the financial system — and that could propel gold much higher,” the internationally recognized expert told US weekly newspaper Barron’s.
Foster, who has seen plenty of ups and downs for the yellow metal, said recently gold hasn’t lost its luster in an age of cryptocurrencies and high-powered tech giants. He suggested it would test the $1,400 level in the second half of this year. The precious metal was trading at $1,293 per ounce on Tuesday.
Will gold reach $1,400 by years end? If it does then 2019 will be set up for a great gain. If it doesn’t then 2019 will be set up for an awesome gain!
If $1,400 is in the cards we should some serious attempts at breaking $1,380 by September, otherwise, forget-about-it.