3 Reasons Gold Miners are Ready to Rip Here are two good charts that make the bull case for gold and specifically the miners.
The second chart is particularly revealing since it shows that the miners are starting to show some leverage to gold.
Note the remarkable out-performance of the miners to gold since June.
This is something that we gold bulls have been waiting for, for such a long time..
goldguy
3 Reasons Gold Miners are Ready to Rip
POSTED ON July 21, 2014 BY CEO Technician
CATEGORY Stories,
The shares of the senior gold producers continue to exhibit impressive resilience as they threaten a breakout from a 15-month head & shoulders bottom pattern:
Click to enlarge
ENLARGE CHART
https://ceo.ca/wp-content/uploads/2014/07/GDX_Weekly_7.21.2014.png
There is ample reason for optimism that the 2nd half of 2014 could be even better than the first half for the gold miners – the top 3 reasons gold miners are ready to rip:
-
August & September are historically the most bullish months of the year for gold and the gold mining space.
-
The gold miners have vastly outperformed the shiny yellow metal in recent weeks. Such outperformance by the miners has historically boded well for future performance in the space.
ENLARGE CHART
https://ceo.ca/wp-content/uploads/2014/07/GDX_vs._Gold.png
Even after the recent rally portfolio managers (PMs) still remain underweight the precious metals space - a technical breakout might be the catalyst needed to drive PMs back into mining shares in a big way.