WE HAVE A BREAKOUT EVERYONE!!!! What a week in the mining sector, no matter the commodity or ETF they are all breaking out of long term trends. We still need a few more weeks of uptrends, but I have a good feeling about this one.
VANECK VECTORS ETF TRUST JR GOLD MINERS ETF (GDXJ)
It is a clear indication on the below chart that money is flowing into the junior mining sector. If gold continues to rally, I would expect the GDXJ to continue rallying aswell. I anticipate the next resistance point to be around $50 USD.
GDXJ Long Term Chart
The hot commodity of the week was Silver (up 6.4% over the past 5 days). The precious metal touched $16.50USD which is the long term resistance over the past 15 years. When we reach a confirmed bull market, if past performance is anything to go by, Silver should run harder and faster than gold (as per the below graph).
Note: In the graph below the orange line indicates the commodity spot price of Silver and the blue line indicated Golds.
Silver Long Term Chart
Another commodity that performed well this week was Nickel (up 9%). Nickel and Silver are my two favorite commodities in the next bull cycle. I have provided some in-depth research into why I like Nickel in a previous post. You can read more on the below link.
Nickel Weekly Price Move
Source: Business Insider
Gold has broken out from its 10-year wedge, with the US Federal Reserve’s decision to cut interest rates, only 8 business days away. All eyes are on America. If rates are cut I would expect Gold to quickly move towards $1500 USD.
Galena Mining ( G1A.ASX)
On Friday, Gelena Mining announced new drill results which intercepted the highest ever Silver result seen at Abra 8.0m at 516g/t Silver. Significant copper and zinc results in ABGT002 (1.1m at 2.3% copper and 5.1m at 5.5% zinc) provide further evidence of potential for non-lead-silver polymetallic mineralized domains. The company ended Friday up 5.33%. With Silver and base metals prices rising, I would expect G1A continuing an uptrend.
Great Bear Resources (GBR.TSX)
On Tuesday, Great bear announced the discovery of the new high-grade “Yuma” gold zone at its 100% owned Dixie Project in the Red Lake District of Ontario. Great Bear sampled the previously uncut core, which assayed 5.5 meters of 4.07 g/t gold beginning at 193.50 meters down-hole, including 2.0 meters of 10.57 g/t gold and including 0.5 meters of 36.90 g/t gold.
The most important part of this discovery is it’s a 1.4km step out which demonstrates the size of Great Bears discovery. The share price continues to rise and where it stops, no one knows.
Marquee Resources (MQR.ASX)
On Thursday Marquee announced that it has now received firm, binding and irrevocable commitments from sophisticated and professional investors to raise $1 000 000 at an issue price of $0.10 per share in a placement. The capital will be used to complete the acquisition of Centenario Lithium Limited.
After a long downtrend, it looks like this news has helped the company start a reversal upwards.
AUSMEX MINING (AMG.ASX)
With a rising Gold price, Ausmex is one to watch (the company ended Friday up 19.23%). On Thursday, July 11th, the company announced results of 25 m @ 4.90 g/t Au (23 – 48 m) including 7 m @ 13.00 g/t Au with 4 m @ 17.68 g/t Au. 16 m @ 3.57 g/t Au (21 – 37 m) with 9 m @ 5.70 g/t Au.
Either the share price is a delayed response to these results or the market should be expecting more news soon. As you can see from the graph below it is a clear breakout.
Finally, as I do every week, I leave everyone this weekend with an image that best describes why in the last 50 years, now is the best time to invest in commodities. Have a great weekend and stay safe.