Thursday, December 28, 2023

Good Morning!

There are two days remaining in 2023 and Gold is challenging $2100, and is in position for a strong monthly and quarterly close. 
 
Gold clearing $2100 would certainly be positive for the miners. Gold stock technicals, even aside from Gold's strength are looking quite bullish. Take a listen to the video below.

Video: Gold Stocks Technical Analysis (9 Min)

Commodity Sentiment is Contrary Bullish

According to the Bank of America Global Fund Manager Survey, managers are the most underweight commodities relative to Bonds since 2009. 

In other words, Bonds are popular and Commodities are not, as the consensus is for lower inflation and rate cuts. 

Also, the cumulative net speculative position in all commodities is at a 4-year low. 

In TheDailyGold Premium.....

In TDG #862, we published a report on a company that has 20-bagger potential over the next 4-5 years, presuming a Gold bull market during that period.

The company could have close to 100% upside in the next 12 to 18 months at current metals prices. 

I am looking more at companies that have value at present metals prices and then assessing their upside potential in a bull market. In the past I erred a little more on the side of upside & leverage versus quality.

However, because of the 3-year bear market in the sector, you can find high-quality juniors that don't need $2400 Gold or $30 Silver to perform.

I teased a company here a month or two ago that has a world class asset. The stock is now up 40% in the last two weeks. Another company that is somewhat similar and is in my top 10 list is up 40% in the last six weeks. Unfortunately, I did not buy that one yet.    

My point is focus on quality and value. When there is a confirmed bull market in Gold, there will be plenty of time to get into other, riskier names with more upside. But go for quality and value first. There is still time to find those companies. But maybe not for much longer.