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Originally posted by fitsch:
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Gold Pennant: Will It Supersize The Rally? By Stewart ThomsonCommodities6 hours ago (Jul 24, 2019 01:58AM ET) 1 Stewart Thomson Articles (191) My Homepage Follow At McDonald’s (NYSE:MCD) restaurant, customers can “supersize” their food orders. Can gold supersize its awesome 2019 price action?GC 6 Months - Daily Bars ChartThe technical action on this gold chart is spectacular!Gold has formed a massive pennant formation. There’s no guarantee that it plays out, but if it does the technical target is in the $1560 area.A $1560 gold price would turn most gold producers into gargantuan cash cows, and the near-vertical rally already in play in silver would likely become a textbook barn burner.Silver 3 Years/Weekly BarsA pattern like a double bottom is now in play on the weekly Silver chart.This pattern suggests the silver rally is just getting started and a breakout over the neckline would target the $18.50 area.The Western fear trade for gold is now the “price driver in play” for all the precious metals upside action, but the love trade is also providing solid and consistent support for the market.Interestingly, the Indian government tariff taxes of 12.5% have effectively revalued the price of the vast hoards of gold held by Indian citizens by 12.5%.In America, real interest rates continue to decline as the business cycle peaks. Any uptick in inflation could create an institutional “feeding frenzy” in gold stocks and silver stocks.Global Stock Of Bonds With Negative YieldsMany bond market analysts believe that rate cuts from the Fed could accelerate the issuance of negative-rate bonds… dramatically!Gold Weekly ChartSome gold analysts worry about the “large” commercial short position in gold on the COMEX, but I predicted years ago that when gold broke out of the bull continuation pattern… the commercial short position could rise to millions of contracts, with the price still going higher!That’s because there are so many institutional money managers getting involved with gold now. The bottom line: Cash pays nothing and has no upside, and a surge in inflation would destroy the bond market and potentially topple the US government.In this environment, institutional stock market investors are embracing gold and gold stocks. They are beginning to embrace silver too. Because silver is such a small market, even modest institutional buying is producing vertical price action!
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No doubt silver will do extremely well, I read this article also. The one thing SVL has going for it is that it is the main silver stock on the ASX so people will naturally gravitate toward it however it is an early stage developer and therefore has many hurdles to go so going all in is not a great idea.. I was tempted today to buy in at the high but as Ive said before there are plenty of other silver juniors overseas that are making 10% daily gains that are priced in USD, so when the AUD drops to 50c you double your money once again.
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