Gold: Position yourself now – precious metals sector consolidated

When prices rise or rise, investor interest increases significantly, and when prices fall, it decreases. As a result, many investors first buy at exactly the wrong time and, secondly, do not trust themselves when the risk-reward ratio is the best and the greatest profits can be made.

Even harmless correction phases take the courage of many investors

The latter is currently the case on the precious metals markets. As you can see on the following chart, the gold price rose sharply from May to early September 2019 – and with it the interest of investors. Then there was a harmless correction, and most investors already lost their courage. I recognize this not only from the sentiment indicators, but also from the access to ours.

Not only the chart technique speaks for the next upward wave. Source: StockCharts


The correction is already over

Who of you is still struggling: The low of the correction was reached four weeks ago. The gold price has risen slightly since then. As you can see on the chart, he has already given a technical buy signal by leaving the typical formation of a bullish wedge for corrections.


The next upward wave has already started

And there are very good fundamental reasons for this: Debt continues to rise worldwide. In Germany too, if you include all shadow budgets and target balances. And the ramblings of the “black zero” that now have to be abandoned means, in plain language, even more debt. And in her first speech on December 12, 2019, the new ECB president virtually guaranteed that there would be no return to monetary policy reasonableness and seriousness in Europe.


The mine indexes are approaching their high again

The picture becomes even clearer when you look at the index of gold mining stocks on my second chart. Here the prices have almost reached the high of late August. The mine stocks selected by me have developed correspondingly positively in our portfolios, some of which have already reached new annual highs.