Junior Miners & Silver: Twin Rockets In Play

War cycles can end with a whimper or a boom.  

The 2021-2025 cycle still has about five months remaining. After failing to end the Ukraine war as promised, the US government is on the brink of being dragged into another war. This one features the warmongering governments of Iran and Israel.

Like most governments, Iranian and Israeli “Gmen” enjoy pounding their citizens with onerous taxes and borrowing lots of fiat money… to quickly spend on ridiculous endeavours.  

Still, they both sport debt to GDP ratios that are significantly lower than that of the United States.

At this point, it’s too difficult to predict exactly how the current war cycle ends, but the good news is that it should end this year.  

Mainstream investors are focused on the overvalued US stock market. They seem eager for their government to become even more bloated and indebted than it already is, so the economy can be “stimulated”, making their stocks go up. 

The US stock market (basis the Dow) shows a tight battle between the bulls and the bears. The bulls have a big inverse H&S bottom pattern in their corner and the bears have an equally impressive bear wedge.

A drop under 41,000 would destroy the H&S and give the bears the upper hand, while a move above 43,000 would give the bulls the edge.

The US stock market has been in a state of sustained overvaluation for years. This is going to end very badly for the greedy investors who are over-allocated to the market.

The US government has gold visas, gold cell phones, and golden shares in failed steel companies. Everything seems to be golden… except for a monthly (and preferably weekly) program to consistently buy gold.  

Why does the self-proclaimed “greatest government in the world” issue mountains of debt instead of working diligently to build one hundred thousand tons of gold bullion savings? The obvious answer: It lacks the moral backbone to do so.

If the government won’t save, citizens need to do it themselves, and on that note:

Saving with fiat currency worked in 1980. Rates were high, set to fall, and a 40year deflation cycle was starting.

That meant fiat savers could boost their purchasing power. In contrast, a 40year inflation cycle is now underway. Rates are incredibly low… and set to rise.  

In addition, empire transition is in play. Fiat-obsessed America will look like an irrelevant ant under an elephant’s foot by the time it’s over, with 3 billion gold-obsessed Chindian citizens ruling the global roost.

It’s best to save with gold, now, and probably for the next 200 years. For a look at the short-term price action:

The target of the consolidation is at least $3700.

For a look at it on a line chart:

A close above $3440 likely defines a major upside breakout as underway.

The miners? 

This certainly qualifies as “chart of the year”. Silver looks ready to essentially maul the US stock market, and CDNX-listed junior stocks look even better against it.

This is the long-term CDNX chart. In the past, junior mine stock investors were playing a lottery; maybe 1 out of 20 stocks would surge after they bought.

A situation is emerging where 19 out of 20 CDNX stocks that investors buy could be rising at the same time.

Junior stock investing isn’t for everyone, especially with size, but as the gargantuan gold bull era rollout continues, these miners look set to outperform everything! At $199/year, my junior resource stocks newsletter is an investor favourite, and I’m doing a special pricing this week of $169 for 14mths! Send me an email or click this link if you want the special offer and I’ll get you onboard. Thanks!

For a look at the intermediate and senior miners:

This is the GDX daily chart. The pullbacks are timid, and another big surge appears imminent. Note the fabulous position of the key 14,7,7 Stochastics oscillator at the bottom of the chart. It’s sporting a rare inverse H&S “launchpad” pattern.

What about silver? 

Silver has been quiet for the past week, but it’s been making new highs while gold has stalled. Silver bugs are ready to have their day in the sun… and it appears that day is here!

For another look at it:

Silver looks set to begin significant outperformance against the stock market.  

All metal investors should consider holding at least a small amount of silver. Gamblers may want to own more, and perhaps do it with a bit of leverage too!

Thanks!

Cheers

St

Special Offer For Gold-Eagle Readers: Please send me an Email to freereports4@gracelandupdates.com and I’ll send you my free “Get Jacked With J!” report. I highlight key GDXJ stocks that could surge after Fed man Jay’s speech this week! Both core and trading position tactics are included in the report.

Stewart Thomson

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Stewart Thomson is no longer an investment advisor. The information provided by Stewart and Graceland Updates is for general information purposes only. Before taking any action on any investment, it is imperative that you consult with multiple properly licensed, experienced and qualified investment advisors and get numerous opinions before taking any action. Your minimum risk on any investment in the world is: 100% loss of all your money. You may be taking or preparing to take leveraged positions in investments and not know it, exposing yourself to unlimited risks. This is highly concerning if you are an investor in any derivatives products. There is an approx $700 trillion OTC Derivatives Iceberg with a tiny portion written off officially. The bottom line:

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