This Will Signal A Massive Gold Stocks Rally / Commodities / Gold and Silver Stocks 2020

Gold stocks are often cited as recessionproof stocks. Although this has not always been true, they do tend to rise whenthe economy is in a recessions and/or when the general stock market is indecline or showing relatively little gains.

Below, is a long-term chart of the Dow:

I have indicated significant gold stocksrallies with blue rectangles. As you can see that they mostly occur aroundDow/Gold ratio peaks and Major Dow peaks.

In fact, the best nominal gold stocksrallies have been after Major Dow peaks (1929 and 1973). This is not reallysurprising, since many of the factors that drive gold stocks rallies are badfor general stocks.

The red rectangle starts with the currentgold stocks rally since January 2016. The best part of this rally will alsoprobably come once the Dow makes a Major Nominal high.

Below, is a long-term chart of the BarronGold Mining Index (BGMI):

On the chart, I have done a type of cycleanalysis using fractals. There are two cycles indicated in the blue rectangles.

The last step in the first cycle (step 4)was the Major Nominal Dow peak in 1973. The BGMI really took off after the 1973Dow peak was in.

I suspect that once a Major Nominal Dow peakis in, we will see a spectacular gold stocks rally.

For more on this, andsimilar analysis you are welcome to subscribe to my premium service. Ihave also recently completed a Silver Fractal Analysis Report as well as a Gold Fractal Analysis Report.

Warm regards,

Hubert

“And it shall come to pass, that whosoevershall call on the name of the Lord shall be saved”

http://hubertmoolman.wordpress.com/

You can email any comments to hubert@hgmandassociates.co.za

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Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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