Categories: Precious Metals
Topics: Gold Stocks

Positioning for 2024 gold-stock gains as the yellow metal sets all-time highs

Answering the Gold-US$3K Question

Gold is now the talk of the resource space… and for good reason.

You may even recall me saying last week,

“Gold is flexing its muscles as we enter March. In fact, the yellow metal is now within about forty bucks of all-time highs of US$2,080 an ounce. A couple of consecutive closes above US$2,100 would likely mark the beginning of a strong push toward US$3K.”

That’s now a booming reality with a string of consecutive closes well above US$2,100 as the yellow metal closes in on its next significant milestone of $2,200 an ounce.

That may happen as early as next week!

I’ve also been saying that silver would follow in tow. And it certainly has. Silver traded at US$22.25 on February 27 — just two short weeks ago — and has quickly risen to above US$24.50 an ounce.

Yet, back to the topic at hand, which is gold.

We were talking about a potential move toward US$3K an ounce, which, if we get there, would mean very, very significant gains in the best positioned gold stocks… and I’m talking everything from the junior explorers to the mid-cap developers and major producers.

But what will it take to get there?

Plain and simple, it’ll require generalists to return to the gold market… meaning mostly Western investors who’ve all but shunned the yellow metal in favor of other non-traditional asset classes, such as Bitcoin, for multiple years in a row now.  

And with pundits christening Bitcoin as the new “Digital Gold,” it seemed — until very recently — highly unlikely we’d get this kind of Western-driven impetus in the gold price. 

Yet, against most odds, and against virtually all talking heads, it does indeed look as though generalists are making their way back to the yellow metal… and, this time, hopefully to stay.

There are a couple of clear signals backing up that premise.   

One, open interest on COMEX has ratcheted higher in recent trading. And secondly, the GLD ETF (SPDR Gold Shares) has added to its holdings over the same timeframe. 
Those two things combined represent the most illuminating proxy you can find for gold demand from Western coffers. Naturally, we’ll have to wait a bit longer to see if the trend holds. 
Another major tailwind forming in the gold space is an inevitable easing by the Fed.

Look, the bottom line is this: After suffering through one of the most oppressive rate hiking cycles in history, we’re now FINALLY heading into a cycle of rate cutting.  

We don’t know yet the exact timing nor how aggressively the Fed will cut… but just yesterday, Fed Chair Jerome Powell had this to say:

“We’re waiting to become more confident that inflation is moving sustainably at 2%. When we do get that confidence, and we’re not far from it, it’ll be appropriate to begin to dial back the level of restriction.”

Reading the tea leaves… I would venture to say it’s pretty clear rate cuts are coming in 2H 2024.

And that brings us squarely back to the gold-US$3K question. And while those tea leaves paint a slightly murkier picture, the current upward momentum in the gold price does feel different this time. 

If you ask me… I would say with some confidence that we will indeed see substantially higher gold prices in the coming few quarters. 

I would also point out that any spirited push toward US$3K won’t come without a series of pullbacks. In essence, what we’ll be looking for is for gold to set a new higher floor, ideally, above US$2,100 (or above US$2,050 at the lower end of expectations).   

My friend and colleague Rick Rule has always been fond of saying, “The strongest bull markets don’t shoot straight up… they grind higher.”

I’m in full agreement there. And what it points to is that “intermittent” pullbacks should be taken as “healthy” pullbacks. 

Hopefully, that’s precisely what’s in store near-term for the yellow metal and, as noted, for silver as well.

With all that being said, and with gold rapidly closing in on US$2,200, we’re beginning to see some early upward price action in the best gold names… and we’ll certainly be looking for a continuance of that trend.

Our in-house gold expert Gerardo Del Real has been anticipating and positioning for a gold market like the one we’re seeing now for the past couple of years. 

He just released a brand-new, feature-length video presentation on one particular gold stock he sees multiplying in value this year. It’s already beginning to spike higher. You can check out that presentation here.

I also mentioned Bitcoin being heralded as the new “Digital Gold,” and it certainly feels like fool’s gold to argue against that logic with BTC now skyrocketing past US$68,000 for the first time in two-plus years.

Remember, Bitcoin’s all-time high of $68,999 was posted back in November of 2021. We’re currently within just a few dollars of that… so look for that record to drop next week as well! 
There are a number of key catalysts forming in the cryptosphere that could easily push BTC to US$100,000 and beyond.

And just like “real” gold, we have you covered there as well! 

Our crypto expert Chris Curl is managing our in-house US$50K crypto portfolio, which has now more than doubled in value.  

Yet, that’s really nothing as his plan is to take things 10X higher to a cool US$1M in short order.

Whether you’re a crypto newcomer or a seasoned expert, Chris explains the nuances of crypto trading in an easy-to-understand language while simultaneously providing the tools and insights to profit right alongside him in his Million Dollar Crypto Club — which you can test drive here. 

Yours in profits,

Mike Fagan
Editor, Daily Profit Cycle