Jason Burack: Big Short Squeeze Coming Soon In Gold Mining Stocks?

By Wall St. For Main St. / January 18, 2021 / marketsanity.com / Article Link

Short interest in some larger gold miners has increased a lot in the last 6-8 weeks.

This January 5th, 2021 article cited 30% or larger increases in short interest in some gold mining stocks and since then paper gold prices have been smashed even more https://m.investing.com/news/stock-ma...

Fred Hickey analysis of latest gold commitment of traders (COT): https://twitter.com/htsfhickey/status...

Meanwhile, US Mint Sales are 700% higher (in US Dollar amount) since last year and central bank are net buyers of gold again since November: Six Central Banks Increased Gold Reserves in November https://schiffgold.com/key-gold-news/...

Bottom Line: Many gold miners and gold stocks are back to valuations when gold prices were around $1500 to $1600/oz and with short interest much higher in many large gold miners than 6-8 weeks ago, a large short squeeze in gold miners is setting up for when gold prices rally over $2k/oz again.

Chart of Newmont Mining, Agnico Eagle Mining and gold mining indexes (GOAU, SGDM, GDX, SGDJ) over the last 6 months: https://www.tradingview.com/x/T6JKsOOC/

Top 10 List of things for gold investors to watch in 2021: https://sprott.com/insights/sprott-mo...

Jason Burack is an investor, entrepreneur, financial historian, Austrian School economist, and contrarian. Jason co-founded the startup financial education company Wall St for Main St, LLC, to try to help the people of Main Street by teaching them the knowledge, skills, research methods, and investing expertise of Wall Street. You can also find Jason's work at his blog website at www.jasonburack.com.

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