SILJ: A Silver Miners ETF For Champions

January 27, 2021

With the ratio charts of most senior miners versus gold bullion looking droopy at best, I will suggest that inflation is needed to give these stocks some “mojo.

Will they get it?

For some quality insight into the matter, please click here now. Hedge fund manager Paul Singer thinks significant inflation could happen, and sooner than most investors expect.

The weekly T-bond chart.From March to late July, there was a disconnect between bond yields and gold; yields rose and gold soared.

That happened in a much bigger way in the 1970s and the big question is of course… can it happen again?

Investors need the patience to wait for a sustained move higher in the consumer price index (CPI).Most people in the world know that “boots on the ground” inflation is much higher than the CPI indicates.

Rent, government services, taxes, and fees move relentlessly higher, but the CPI just sits there, year after year!

Unfortunately, the big unleveraged institutional money managers won’t take “here to stay” positions of size in the miners until they see the CPI showing a strong uptrend.

The good news for the miners: I’m predicting that the ascension of Janet Yellen to the US Treasury throne will be a game changer for inflation as measured by the CPI.

As Fed chair, Janet added momentum to the stock, bond, and real estate market inflation that was created by Ben Bernanke’s ludicrous QE program.

That program deflated Main Street’s purchasing power while enriching the government and Wall Street.

The Fed clearly likes printing money to create financial markets inflation for the richest people in America, but as Treasury Secretary, Janet is more likely to direct enormous amounts of printed and borrowed money at Main Street.

What is arguably the most important gold chart in the world.Investors really need to stay focused on two items; the fundamentals that can create Main Street inflation and this weekly gold chart.

The most important support and resistance zones are highlighted here, and those zones are where investors need to take action.The amount of action taken should relate to the fundamentals for inflation that are in play.

I suggest buying the $1767 area with a stoploss.

I already urged investors to buy the $1788 area without a stoploss, sell some into $1966, and hold some… for the rest of time!

Now, it’s unknown whether gold will make a base and rally, or possibly move under $1767 and find support near the low around $1671.Investors don’t need to know which scenario is next.They just need to prepare act with professionalism in either case.

Support created by lows offers stoploss enthusiasts great potential reward with minimal risk.

The important daily chart of the dollar versus gold.Note the dotted blue uptrend line.That’s a line of support for the dollar.

A move to $1880 would be great news for gold bugs and probably see a move to $1966 and then $2089, but without a “pop” in the CPI index, a bigger move towards $3000 is unlikely to be in the cards for now.

The “ETF of champions” chart.From my initial buy zone (created by the arrival of gold at $1450 in March 2020), SILJ has been one of the world’s great investments, and some of the component stocks look even better!

The arrival of gold at round number $2000 created the “book partial profits” sell signal, and the consolidation has taken the shape of a symmetrical triangle.

A breakout has occurred and the pullback to the triangle apex offers new investors a chance to join the inflation-oriented silver stock party.

The current price is in the $14 area, which is a sweet spot to board the silver mining stock train… before it leaves the station loaded with rising CPI index fuel!

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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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Stewart Thomson is president of Graceland Investment Management (Cayman) Ltd. Stewart was a very good English literature student, which helped him develop a unique way of communicating his investment ideas.  He developed the “PGEN”, which is a unique capital allocation program. It is designed to allow investors of any size to mimic the action of the banks.  Stewart owns GU Trader, which is a unique gold futures/ETF trading service, which closes out all trades by 5pm each day. High net worth individuals around the world follow Stewart on a daily basis.  Website:

Most silver is produced as a byproduct of copper, gold, lead and zinc refining.

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