leh

Gold's Fundamentals: 'Extremely Appealing'

Despite all the pessimism, gold is still trading just 30% off its March highs, which isn't bad compared to many other commodities. Nobody talks about this relative strength, nor the fact that the correction is now over 7 months old, meaning a turn may be coming shortly.

Admittedly the miners have been slammed much harder, but IMO this is a major buying opportunity with many off 70% or so, and some of the silver miners off up to 90%. Cripes, I nibbled on some CDE for .67 a share on Friday. There are much better silver stocks for sure fundamentally (SLW appears to be in the sweet spot here financially), but I'm looking for a quick technical pop trade right now until the major uptrend resumes.

Too soon to tell, but the bottom may be close as the miners had very good days on decent volume Wednesday and Thursday, and held most of those gains Friday. And that fake out rally in gold a month or two ago may just have flushed out the remaining weak hands here.