Tag: mining

Get Ready for an Historic Upside Gold and Silver Run

Get Ready for an Historic Upside Gold and Silver Run

The Bigger the Base, the Greater the Upside Case. This saying among technical analysts/chartists helps define where we are today in the precious metals – and where we’ll soon be headed. It means that when prices “base” in a relatively narrow sideways range for an extended period, they will at some point break out. Before the action gets underway, bears and bulls alike will get “sandpapered” as they take positions, trying to guess whether or not the price is getting ready to decline further or move upward into a new bull phase. If you consider that time spent in sideways consolidation represents a build-up in stored energy, then a valid […]

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The Commodity Cycle: What It Means for Precious Metals Prices

The Commodity Cycle: What It Means for Precious Metals Prices

The cycle for any commodity follows the same basic pattern… When prices are low, production falls. As new supplies diminish, the market tightens and prices move higher. The higher prices incentivize producers to invest in production capacity and increase output. Eventually, the market becomes oversupplied, prices fall, and the cycle starts all over again. Of course, this is a simplified model of what drives commodity cycles. Booms and busts can be amplified and extended by speculators, by unexpected shifts in demand, or even by interventions from central banks and governments. Regardless of the causes, commodity markets will always be cyclical in nature. Commodities as a group can be pressured upward […]

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