Are you a metals fan? No…NOT Iron Maiden, Metallica, or Slayer. I’m talking about PRECIOUS metals!
I’m asking because I have some good news for you. Check out the MoneyShow Chart of the Day here. It shows the performance of two ETFs that track gold and silver...and two ETFs that track gold and silver MINERS. Right now, miners are breaking out to the upside – which from where I sit, means the metals are likely to follow soon.
GDX, GLD, SIL, SLV: Miners Leading Metals
Source: Yahoo Finance
If you invest in mining stocks, you know that they have leverage to the underlying metals. In other words, if the price of gold and silver rises – but operational costs stay relatively stable – the profits miners churn out can surge. That’s why the Global X Silver Miners ETF (SIL) is up 76.6% in the roughly one-year timeframe of this chart, compared with about 40.3% for the iShares Silver Trust (SLV).
What I’ve also seen many times over the years is that mining stocks lead the underlying metals. If that’s the case here, then you have to be really happy with what SIL and the VanEck Gold Miners ETF (GDX) are doing.
A few of the MoneyShow experts I trust, including those who have shared technical outlooks for gold HERE and HERE, note that we need the yellow metal to punch through $3,450-$3,500 – and stay there. That would help confirm this new leg up.
But if the mining stocks are telling us something, it could be just a matter of time!
