Christopher Aaron, Founder of iGold Advisor and Senior Editor for GoldEagle.com, joins us to share his technical and larger macro outlook for the precious metals sector, and noting the break to new all-time highs in gold, and eventually silver is coming. We start off reviewing the false breakdown in gold below the $1980 support last fall, and how conversely to the 2013 waterfall decline, that the yellow metal actually rallied very strongly in Q4 and into Q1 of 2023.
He noted on Tuesday, at the time of this recording, that Gold had briefly pierced the $2000 level again for the 3rd time on Sunday evening/Monday morning, but that often the 3rd attempt to break a pricing level fails. However, after gold further consolidates the recent pop higher, that he believes the next attempt will have gold break up through $2078 to makes new all-time highs. With regards to silver he believes it will follow suit, and eventually the prior all-time high at around $50 will become a vacuum sucking prices up there to eventually test and break that level higher.
Another key contributing data set that Christopher is watching for confirmation is that gold has broken out to new all-time highs in 4 currencies; the Japanese Yen, British Pound, Australian Dollar, and New Zealand Dollar. In addition gold is getting close, up near technical pricing resistance in 3 more currencies; the European Euro, the Canadian Dollar, and the Swiss Franc. Moves to all-time highs in other key global currencies often precede a move higher in gold in US Dollar terms.
Lastly, we wrap up with the glaring disconnect in mining stock valuations at today’s metals prices, compared to where they have been valued during previous periods of similar high gold and silver price levels. Christopher dispels the notion that it is completely due to simply dilution of share counts or inflation, because many of the development stage companies have also drilled out far more ounces in the ground increasing their resources substantially, or further derisked projects, picked up additional land claims, and even put out PEA and PFS economic studies highlighting the viability of their projects. He goes on to highlight 2 such companies that he is invested in, Bravada Gold (TSX.V: BVA) and Sirios Resource (TSX.V: SOI), that he feels represent compelling valuations at present.
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