Strong Move Out Of Nowhere

While people were dancing on the graves of miners, including many long time metals bulls just recently, many miners have raced higher with new all time highs in gold, and silver closing in on the $25 level again. Some quick charts…

Miners look great to me, and while they are extended in the very near term and could correct lower at any time, it should be used as a buying opportunity. Keep in mind most silver miners are actually 50-75% gold producers, or derive much of their revenues from other metals like copper or zinc, so higher gold prices will go right to the bottom line. Even better, many trading days lately it is miners that are the strongest group, while most others are down on the day. This run has only begun, but expect sharp, scary pullbacks along the way, as the bull ties to shake you off!