Gold rose better than $5 today, and silver some $.14. No great amount for either, but was it enough to say that the correction is over? If so, we would expect to see an expansion in volume in the advance in the price of our mining shares. If that’s not there, then this lift today should only be considered as tentative. So, let’s look at them all, and see what there is to learn…
Well, I see those that rose today on low volume, like: KGC, FSM, AG, PAAS, IAG, AUY, CDE, NGD, SA, RGLD, RIC, AGI, ABX, SGDM, SLW, GDX, SLV and GLD.
Others rose on expanding volume, as HL and EXK did.
We had one to decline, as AU did.
What this would be saying to me is that rather than a correction, where prices go into a period of decline, it’s beginning to look more like a consolidation, where prices tend to meander in more of a sideways pattern.
What is of keenest interest at this point is the number that are either very close to their highs, or even did close at a new high today. Those that have done that are: KGC, FSM, HL, AG, PAAS, IAG, AUY, RGLD and ABX. This being the case, even though the metals themselves are further from breaking out… I would think prices would hold and wait for the metals to catch up… for if the metals breakout, you can be sure the miners will experience a whole ‘nother pop to the upside! Look for that, it could be coming soon!
Metals are up again this morning, gold by $4, and silver by $.22. Will this be the day metals rise that launches the mining shares next lift? Look for it today. If it happens, we’ll see mining shares launch on volume. If that is happening, you can be a buyer!
Here’s to the accumulation of real wealth!
Harold F Crowell