After months of suppression with all broader equities Gold Miners GDX suddenly remembered on Friday that they have been waiting all these years for Disaster to come and to be a protection, store of value and even new wealth creation in times of Debasing of Empire and its currency US Dollar. GDX has rallied 27% on Friday. What happened? We have discussed already that Gold is screaming on its charts. Gold Miners have rallied Friday even with US Dollar flirting with new highs. Downtrend line is broken to the upside and potential overtake of MA50 is in the picture. Largest Gold producer Barrick Gold ABX has rallied more then 30% in one day. We are closer to a point when direction of US market will be irrelivant for Gold miners or even better: its dimise will fuel rise in Gold, Silver and Miniers. Because of artificial US Dollar rally and pending collapse of Treasury Bubble Gold is positioned to overtake recent highs in a very bold action and fuel new rally in its Miners. Watch further developments in Royal Gold RGLD early warning Gold indicator of future move. Total value of all mining companies represented by HUI Gold Bugs Index is still below 100 billion dollars, one Google GOOG was much bigger then total sector in its Happy days. We need just 1% of total value in equities to ignite the sector to the new highs. Recent Deflation Fear and following Deleveraging have damaged the sector, Supply side is struggling and Gap will be huge with rising Demand driving the prices Up. Situation with a small brother Silver will be even more explosive, with recent cuts in production in Zinc and Copper mines and hundreds of projects put on shelves Supply will never come at this price level as a majority of Silver is mined as a By Product of Zinc and Copper mines.
GDX, SSRI, SLW, AUY, ABX, MGN, SST.v, OK.v, TNR.v, BVG.v, MAI.v.
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