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Do Or Die For Miners

Sprott Money profile picture
Sprott Money


  • GDX has been hammered down from resistance at 35.10 to almost 30.
  • SILJ has also dropped 18% from 14.57 to support around 12.
  • That said, I believe the miners are presenting us with a great dip-buying opportunity.

Mining worker working outdoors at the Quarry

coldsnowstorm/E+ via Getty Images

By David Brady

There’s been a clear bifurcation between the metals and miners over the past nine days. Gold has been drifting lower from 1815 to around 1760 as I type. Silver was no different, slipping from 23.70

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Sprott Money profile picture
Established in February 2008, Sprott Money Ltd. is a leading precious metals wholesale, institutional and retail dealer selling gold, silver and platinum bars, coins and wafers online and over the phone. We offer competitive precious metals storage, IRA, and RRSP services, as well as a comprehensive news site.Sprott Money Ltd. is a privately held company owned by Eric Sprott and operated by Larisa Sprott.

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Comments (6)

07 Dec. 2021
I don’t put much faith in David Brady’s assessment. Generic comments about stocks, oil, PM’s etc aren’t terribly helpful.
terryongarland profile picture
Where does Crypto figure in ?
That is the problem with this thesis.
Swiss Maven profile picture
Two risks here.
First is that the overall stock market is so over-owned, over-bought, and over-believed that it is susceptible to a sizeable setback, if not a bear market. If that occurs, all stocks will go down. Remember, mining stocks are just stocks.

Second, momentum in gold is heading down presently, as PMO shows us. If spot closes a couple days below 1,760, technicians I read are pointing to 1,640 as the next downside objective.

Now THAT would be a great dip-buying op!!
@Swiss Maven, $1670 to $1680, basis the continuous futures contract, has provided firm support over the past 18 months. Should gold drop below $1670, I strongly doubt that $1640 would hold. More likely would be a trip down to the 1550s.
hawkrnc_19 profile picture
The market cycles are so distorted buy the Fed it is almost makes even guessing difficult.
So give me a range when you feel it will take off. I feel tax loss selling in December then sometime in Jan to March but what do you feel. People know the market will sell off as bonds start to crumble. Once fed stops buying billions of 1.5 10 year treasuries the yield will have to go up to possible 3 by the summer making these bonds worth 50 percent. Stocks will crash so possible nothing will move for the miners till then
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