Precious metals miners near capitulation bottom
The hosts argued that gold and silver miners are reaching a severe technical oversold territory that historically precedes significant market bounces.
The argument
The bullish percent index for gold miners has dropped to extreme lows of 10% to 13%, signaling deep capitulation. While major miners and silver stocks have suffered 40% to 50% pullbacks, the underlying long-term bull case remains supported by massive monetary debasement compared to previous cycles like 2011.
The thesis, stress-tested
✓ What validates it
- ✓SLV breaking out above its daily downward trendline and reclaiming the $80 level
- ✓Spot silver rising back into the $70s or $80s within the next one to two months
- ✓The US Dollar Index (DXY) failing to hold key resistance levels
▸ Risks discussed
- ▸A decisive break below $48.50 on the SLV ETF would indicate a structural breakdown similar to 2011 rather than a temporary pullback
- ▸A strengthening US Dollar Index (DXY) breaking key levels around 100 acts as a persistent headwind
- ▸Rising real interest rates and hawkish shifts in Federal Reserve rate expectations pressure non-yielding assets
Hear it yourself
"important aspects of that, given, you know, ourselves really realizing of how much the supply chain was reliant on countries like China. Some people were well ahead of that. I remember talking about this a long time ago, in fact, but but that that became a whole topic. You know, on shoring is sometimes, not nation as as part of this this issue, but it it's it's you know, if you just look at the electricity consumption in China, for instance, which is the manufacturing plant of the of the world, And, you know, it it looks like this, and and and you look at The US over the last few decades, and it has basically gone flat."
AFFILIATE LINK · ZORTIX MAY EARN A COMMISSION · NEVER A RECOMMENDATION TO TRADE