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SD Weekly Metals and Markets welcomes a very bullish David Morgan for all the latest on the precious metals and the mining sector.

 

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Are We Looking At A Once In A DECADE Opportunity? 

Doldrums term is very apt for gold’s summer predicament.  It describes a zone in the world’s oceans surrounding the equator.  There hot air is constantly rising, creating long-lived low-pressure areas.  They are often calm, with little or no prevailing winds.  History is full of accounts of sailing ships getting trapped in this zone for days or even weeks, unable to make any headway.  The doldrums were murder on ships’ morale.

The gold miners’ stocks remain deeply out of favor, largely shunned by traders.  Since this sector just spent the better part of a year grinding sideways, such bearish sentiment isn’t surprising.  But with a giant technical formation nearing a major inflection point, things look to be coming to a head in gold-stock land.  A big breakout is nearing, and gold stocks’ deep undervaluation relative to gold argues it will be to the upside.

The junior gold miners’ stocks suffered a serious thrashing between mid-April and early May.
The recent major selloff was totally unjustified.
That makes this battered sector a screaming buy right now fundamentally.

The gold miners’ stocks have been slammed by a sharp gold pullback in recent weeks, spawning today’s bearish sentiment.
However, the major gold miners’ accounting earnings already exploded higher in Q1 without Q4’s big writedowns.  That leaves the gold stocks wildly undervalued even at today’s prevailing gold prices, let alone where gold is heading in coming quarters.  Sooner or later gold-stock traders will realize how irrational their latest bout of excessive fear was.  Then they will flood back in with a vengeance, catapulting gold stocks far higher:

As Billionaire Eric Sprott points out in this MUST WATCH interview with SGT Reportthe reason behind the down-move is actually the opposite of what you may think: