OASIS FORUM Post by the Golden Rule. GoldTent Oasis is not responsible for content or accuracy of posts. DYODD.

Has Xi Jinping Lost Control Of China’s Military… And China Itself?

https://www.zerohedge.com/geopolitical/has-xi-jinping-lost-control-chinas-military-and-china-itself

Once the big boys start to pay serious dividends, it should help. Regardless though, that trend is going to change. Imagine if that number got to 5%.

That’s interesting about volatility, not something I watch, but you would sure think it would be going nuts with the swings of the last couple days.

I expected us to move up today, but not like this. Gold is at a new high for the year right now. Silver underperforming but still blew right through $52.

Doesn’t mean they won’t try to reverse this, but certainly unexpected. Pretty clear they are much more concerned with silver than gold at the moment.

Looks like for the first time in a long time we’re going to participate in a year end rally if the tea leaves hold up.

Gold and gold mining stocks have not only surged past the S&P 500 this year but have also quietly outperformed over the past three, five and even ten years—a remarkable run that has unfolded with limited investor participation.

Yet despite their impressive returns, the sector remains deeply undervalued, according to Sprott, with analysts anticipating further gains and making a case for gold to be included in core strategic holdings, much like during the 1960s and 1970s.

Risk diversification

In a note published this week, Sprott’s senior portfolio manager John Hathaway wrote that a short-term correction in precious metals — which is inevitable given their recent performance — should not deter investors from making a long-term play.

According to Hathaway, investing in gold nowadays is almost synonymous with risk diversification. He cited Morgan Stanley CIO Mike Wilson’s recent recommendation of replacing the traditional 60/40 risk mitigation model portfolio with a 60/20/20 portfolio consisting of 60% equities, 20% fixed income and 20% gold.

Earlier this year, Goldman Sachs also suggested that replacing bond exposure with gold could enhance a portfolio’s return over a five-year horizon.

Equities underappreciated

To that end, Sprott’s Hathaway believes that capital allocation to the gold sector is still in its early stages. Specifically, he sees substantial growth upside in gold-related equities, as they remain underappreciated despite outperforming both the metal itself and the S&P 500 index. In the nine months to Sept. 30, gold mining stocks have risen by over 122%, versus 47% in bullion and 14% in the S&P.

“In our opinion, mining stocks are transitioning from pariah status to momentum plays as leverage to a bullish outlook for gold prices. Despite strong gains this year, precious metals equities remain modestly valued,” Hathaway wrote.

However, investor participation in these assets remains tepid, with the Sprott analyst pointing out that the largest gold mining ETF, VanEck Gold Miners ETF (GDX), has seen net outflows in outstanding shares over the past two years.

Hathaway also noted that the gold mining stocks currently have an aggregate market capitalization of approximately $550 billion, which is only 0.43% of the global total. Mining stocks (of which gold mining equities are a small subset) are now at their smallest share of global equities since 1900, he added.

Silver catching up

In addition to mining stocks, Sprott is backing silver as another “catch-up play”, noting that the metal has lagged gold over the past decade.

In his note, Hathaway said that years of deficits in silver have led to extreme market tightness, and silver has been outperforming strongly, with year-to-date gains surpassing that of gold. Despite this recent catch-up performance with respect to gold, the gold-to-silver ratio at 83x still sits above its historic average of 67x, he wrote, highlighting silver’s potential upside.

A breakout to new highs (to compensate for the improved gold price), along with a re-rate of the silver equities to long-term averages (and a catch-up to their gold-producing peers), would be in keeping with the latter half of previous precious metal bull markets, he added.

READ THE MINING.COM ARTICLE HERE!

---

METALS AND MINERS IS A READER SUPPORTED PUBLICATION. WE WORK HARD TO BRING GREAT VALUE TO YOU, OUR COMMUNITY. PLEASE CONSIDER SUBSCRIBING TO SUPPORT US. THANK YOU!

so far and i say that nervously, the action is not of a major top…at a major top the mkt will crash, then bounce back strongly, but not take out the Hi’s and then crash again etc, until eventually u are well below the Hi’s.

What is very odd here, is that the volatility has disappeared …for now……we should be flying all over the pace….

Palladium is about to turn higher. Not going to hurt silver. Gold already back on the horse.

Crimex opens and the shorts are already in trouble. Gold looking to retake &4300?

Unreal.

They really tried to stop the momentum in silver on Friday didn’t they? Yet here we are again battling to retake $52. I didn’t realize how much silver rallied after the SM closed on Friday. I think at one point, silver got down to $50.70 or so.

Have to wonder how much they’ll be willing to spend today or this week.

to cap the rally……but we have a backwardation between Londonistan and Crimex of @ $ 2…still.

and if Crimex traded @ 1 billion 0z’s London must have done the same…which means 2 years of production was sold…..so unless someone has a very big shovel, or we get a price collapse soon…..what will they have to pay to buy it all back…!!!!

https://www.cmegroup.com/markets/metals/precious/silver.settlements.html

But have we corrected enough here, we have in time as wave 1 up was 13 weeks and so far wave 2 dn cud be 10 weeks….and has stopped at the 38 % level

Everything looks pretty good to start the day, except oil, which is down over 1/2% and has a $56 handle. Gasoline can keep falling and I don’t think anyone will complain. Bitcoin is roaring back, up 3K this am. The dollar is up slightly and rates are up 2 bips to 4.02%. SM futures look good too. Up around 1/2%

PM’s are rebounding nicely. spot shows gold up $7.20 and silver up $.24. However, that reflects the gains from the AH’s on Friday. When I look at GLD and SLV it looks a bit stronger. PM shares look strong too. Most sporting 1-2% gains in the early hours.

Almost like nothing happened in pm’s on Friday. If the pattern holds true, we’ll get a small move up today, and then really start to get going the next few days.

So far, so good. Kind of nice not getting all the gov’t. eco data reports, don’t have to worry so much about the associated shenanigans.

probably needs to trade around it, to build the power to break it

Southern Pacific Passenger Power
https://www.railpictures.net/photo/889228/