By Jeb Handwerger
Mining Feeds
This past week I have had to cut back on my publishing due to my travels to the Precious Metals Summit where I had back to back meetings with some of the top fund managers, investors and over 30 of the highest quality junior miners. I was able to get updates in person of current and past holdings as well as potential new first class opportunities with huge catalysts ahead.
The Post Labor Day rally in precious metals I expected has turned into the Post Labor Day Selloff for precious metals and many mining stocks. Many investors came back from Labor Day and sold their precious metals in favor of the U.S. dollar. This could be the worst possible trade right now. This could be the shakeout before the breakout in the precious metals. Generally this is a seasonally strong time for gold and silver. We may bounce off new lows below $1200.
Despite gold testing new lows, the junior miners are still in an uptrend since December of 2013. Is the outperformance of the junior miners indicating that gold may bottom here around $1200?