Breakout in Gold

by JDH on December 28, 2019

That was quite a week, eh?

NUGT, our highly leveraged proxy for gold mining shares, started the week below $27.50, and on Thursday traded above $34.50, before settling back to close the week at $33.38.

That’s not a bad week, and that puts NUGT back to where it was in September, which may indicated that the consolidation period is over.

Many commentators are predicting a less-strong US Dollar in 2020, which is traditionally good for gold, so this could be the beginning of a good run.

That’s how I’m playing it.

Generally January and February are good for gold, so now is the time to play it.  Last year the start of the year was good, and then the rest of the year was a dud, so the strategy may be to buy now, and sell in February, and take the rest of the year off.

Is that how it will play out?

We’ll see.

It would appear that the cannabis investors have completed their tax loss selling and are putting their money in gold and resource stocks.

Money flow is good.

Let’s hope it continues.

Here’s to a great 2020.

Happy new year.  See you next week.