It is time for junior mining investors to wake up from summer doldrums

By Jeb Handwerger
Investing.com

Jeb Handwerger
Jeb Handwerger

It’s time to wake up from your summer doldrums. The technical signals are turning positive for precious metals and the junior gold and silver miners. The record shorts such as hedge funds and high speed traders who have been manipulating the paper market may soon run scared as major accumulation has entered the sector this month.

Gold and silver have held the lows and major volume and big money is coming into the sector. The record short position may already be running from cover. The Junior Gold Miner ETF (ARCA:GDXJ) is already up 15% this month.

With geopolitical tensions increasing in the Middle East and Eastern Europe get ready for a big breakout at $1400 on gold. The move in the junior miners and silver could be huge and provide great leverage.

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