Shall We Let The Games Begin?

That is a little small for the BIG MOVE the gold mining stocks put on today.

That is a better view. And that is what is called a BREAK OUT!

There are no guarantees in the markets, however what I can say is the DOWNTREND which has plagued the precious metals markets is over in the HUI Index.

A DOWNTREND is defined as a series of LOWER LOWS and LOWER HIGHS.

Conversely an UPTREND is defined as a series of HIGHER LOWS and HIGHER HIGHS.

As far as I can see, the HUI Index has now established a series of HIGHER LOWS (the most important part of the equation) and HIGHER HIGHS!

Gold is on the edge of greatness. I stress the "on the edge" part, as gold has yet to blast through the prior HIGH unlike the gold mining stocks. Nothing unusual as the miners tend to lead the metals.

What needs to happen is gold needs to take out the prior high in a decisive manner. Until that happens the metals are still in flux.

Come on!

Silver blasted higher today and stopped right at the prior HIGH. The action in silver is beautiful BUT still needs to clear the previous HIGH before declaring an new BULL MARKET.

source: JM Bullion

The premium on silver Eagles remains very high.

I have always been an advocate for physical silver in your own possession. Mining stocks may provide a higher yield but at the end of the day these shares are nothing more than electronic notations that you have a claim to something that may not even exist.

Remember you do not OWN the shares in your trading account, your BROKER is the registered owner. The physical silver in your own hands is yours!

Peace Out and Stack On!