Jordan Roy-Byrne, Founder of The Daily Gold, joins us to review both his near-term and medium-term technical outlook for gold and silver, the changing investor psychology around gold mining stocks, and how he looks at optionality in the silver stocks. We start off noting the recent weakness to kick off this week on the precious metals charts; which was to be expected after such a big move the last few months to overbought levels. In the medium to longer-term Jordan is not concerned by the consolidation and still sees measured moves up to $3,000-$4,000 in gold depending on how one extrapolates out the large 13 year cup and handle pattern.
We then shift over to discussing the mining stocks where Jordan advises not chasing the “rhino-horn” charts with steep vertical moves, as they usually represent short-term termination events, before correcting, basing, and building the next leg higher. He goes on to make the case that investor psychology around gold stocks is gradually changing, as people come around to the reality that gold prices are remaining higher, and so pullbacks will be bought and less severe than we’ve seen the last few years. While Jordan is still most animated by the quality growth-oriented gold producers, and quality gold developers of size, that are within 1-2 years of getting their mine built and into production; he also likes the silver optionality plays with quality ounces in the ground that could have more torque to get rerated higher on rising metals prices.
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