TheDailyGold: Watch for This Signal Before Fed Shifts Policy....

Published: Thu, 05/05/22

The Daily Gold
Jordan Roy-Byrne, CMT, MFTA


Thursday, May 5, 2022


Good Morning!

Last week we wrote about the looming big catalyst for precious metals: the Fed ceasing rate hikes and shifting policy. But the Fed is still hiking...for now.

What will come in between now and then that could be good news for precious metals? 

Whatever it is, look to the bond market.

Click Here to Read The Article

Since the last email to you, there has been another important development. The Gold/Silver ratio has broken out to the upside.

The macro is slowly shifting in Gold's favor. But not yet in favor of Silver, which will come after Gold. In the video below I analzye the last 5 bottoms in Silver, the trend in the Gold/Silver ratio leading to those bottoms and what it could mean for Silver moving forward.

Click Here for My Analysis in Video

One more thing...

Gold has held up really well. I know we cannot say the same for Silver and juniors, but they will follow Gold with gusto when it breaks above $2000-$2050.

Gold has been dealing with a rising dollar and rising real interest rates. A real double whammy. Yet, its held up far better now than it did in 2013, and 2016-2018. This is another indication that Gold could explode when it breaks resistance. 

Click Here for my Analysis in Video



This is the Goldman Sachs Financial Conditions Index. 

When it rises it indicates tightening financial conditions. The components in the index include the stock market, the 2-year yield, real yields, the US Dollar and credit spreads. 

During the GFC in 2008 the index rose from 99 to 105. During the Covid Crash it rose from 98.5 to 101.5. It did not rise much from 2016-2018. It has currently risen that much already. 

How much more tightening is there to go? Perhaps, not that much. 


In TheDailyGold Premium...

TDG #776 included an updated report on one of my favorite companies. They have an excellent deposit that is overlooked by most investors.

It has strong economics, has good size and thanks to exploration success, management is keen on expanding the mine, likely in 2 years. Based on my calculation, this has up to 7x potential at $3000 Gold in 2024. Maybe you will be able to buy it another 10% lower. 

One change I made in TDG #776 and will continue with, is using a table to highlight my ongoing top 10 companies.

The table will include company market cap, cash and a paragraph of notes. This should be far more helpful than a portfolio spreadsheet that contains old data, not relevant to today.

Right now, the top 10 is comprised of mostly gold companies, producers and developers. This will shift as the macro and market shifts. At somepoint this year the top 10 could feature more exploration or silver companies. And I will include notes on companies not in the top 10.      

Now is the time to subscribe. Get knowledge, get educated and get positioned soon. Gold usually moves ahead of my own expectations. I don't want you to have to buy quality 30%-40% higher than it is now. Subscribe today. 



Thanks for reading. I wish you all great health and prosperity in 2022 and beyond!


Disclaimer: This newsletter is intended for informational and educational purposes only and should not be considered personalized and individualized investment advice. Investment in the precious metals sector contains significant risks. You should consult with an investment advisor and do your own due diligence before making any investment decisions. This email may contain certain forward looking statements which are subject to risks, uncertainties and a multitude of factors that can cause results and outcomes to differ materially from those discussed herein.