Precious metals might be the most straightforward trade on the sheets right now.
Gold is 10 bucks away from a new all-time high. Silver and platinum are holding above critical breakout levels. And mining stocks are ripping.
Close your eyes and take a swing. You’re bound to hit a winner.
But your odds of success (and potential payout) improve if you forego shiny rocks in favor of buying gold and silver mining stocks.
Check out the Gold Miners $GDX breaking out relative to the Physical Gold Trust ETF $GLD:
GDX outperforming GLD speaks to risk-seeking behavior – a bullish environment for mining stocks and physical metals.
No wonder Alamos Gold $AGI, Eldorado Gold $EGO, and Kinross Gold $KGC are posting fresh multi-year highs. The most resilient trends outperform their alternatives – just like the Gold Miners ETF in the above chart.
Meanwhile, the laggards refuse to break down. Even Newfound Gold $NFGC – fresh off all-time lows – has rallied more than...
It doesn’t matter whether we’re talking about markets or summer vacations – I always avoid the crowds and aim to beat the heat.
No lines. No traffic. No fake, overpriced food.
It also means dropping those hot semiconductor names and reaching for silver mining stocks…
July is by far the best month of the year for gold’s crazy cousin. And it’s not even close:
Unsurprisingly, silver futures gained roughly seven percent last week. They also eclipsed the previous month's high and printed their highest weekly close since January 2013 – a stellar way to start the month.
On the flip side, June takes the cake as Silver’s most challenging month of the year.
And what did Silver do last month?
It only fell by three percent, finding support at a critical shelf of former highs:
Silver futures are down almost three percent today alone. No biggie.
It’s easy to overlook following Friday’s selling pressure. But price is respecting critical support levels for Gold, Platinum, Palladium, and even gold’s crazy cousin.