Just a quick update as things are moving quite fast in the PMs.

The precious metals market moved higher today, and I just received the following question:

“What is happening with silver?”

The thing is that silver soared in a major way today, gaining about $1.5. It moved above its September 2022 high, and almost touched its August high.

The GDXJ did move above $30 (it has yet to close above it, though) and gold moved a bit above its late-September highs, and the downtrend in both markets remains visibly intact.

However, silver soared. What gives?

Those, who have been following my analyses for some time likely know what this means. It means that the current move up is likely fake. Silver tends to outperform gold in major, yet brief way, right at the end of a given upswing, or close to it.

That’s exactly what we see today.

The S&P 500 futures are up today, but let’s not forget that they broke to new yearly lows in weekly terms. Therefore, it would take more than a daily rally to invalidate this bearish indication. Do you remember the Sep. 28 session, where stocks “invalidated” the breakdown to new lows? Well, it was followed by another slide. Since Friday’s breakdown was more important (weekly!), then it seems that the bearish forces are likely to return shortly this time as well. And with them, lower gold, silver, and mining stock values.

All in all, the very bearish outlook for the following weeks/months remains intact.

As always, we’ll keep you - our subscribers - informed.

Thank you.

Sincerely,
Przemyslaw Radomski, CFA
Founder, Editor-in-chief