Gold continues to run higher. In a normal world a sell off should begin soon. However, in a "bull market" throw logic out the window.
If you thought gold has caught a bid, stand aside for the Silver Bullet is shooting for the stars.
The miners opened with a gap higher and well above the Bollinger Band. In a normal world this chart is screaming for a pull back. But then again, in a "bull market" throw logic out the window.
I want to share some monthly charts.
On the monthly chart you can clearly see that gold hit its all time high. The question is of course; now what?
I will note that the speed with which gold has achieved this level is almost breathtaking and it has done so with little to no fanfare.
Unlike gold, silver is nowhere near its all time high. Food for thought as to where the opportunity lies.
I want to also share a monthly chart of the HUI.
The last time gold was trading at these levels the HUI was well over 600. Something is a bit out of whack.
These are the things that I must ponder long and hard. Do these charts reveal that silver and the mining stocks are the place to be? Or has this recent rise in gold been a bit of a fluke?
Either way, the markets are moving and the Bull is snorting as we leave the Summer doldrums and enter into one of gold's strong season.
Of course the easiest course of action is to stack physical silver with a dollar cost averaging approach.
I have acquired a few shares of junior mining companies, as simply a lottery ticket play.
Peace out and stack on!