Are We There Yet?

First a look at the HUI Index of gold mining stocks. The DOWNTREND in the gold mining stocks remains intact.

A DOWNTREND is defined as a series of lower lows and lower highs.

On September 1st, the HUI hit a new LOW of 180.47, for the down move that began back in March of this year.

Given what happened in GOLD today, I am a little surprised that the HUI did not break the previous low.

The mining shares do warrant watching over the next few sessions. IF today's LOW can hold and the BULLS can take out the recent HIGH of 204.22 then we could have a change in trend formation.

Until such time the trend remains down for the gold mining stocks.

Gold washed out today and formed a new LOWER LOW and is now a critical juncture.

Below is a Monthly Chart of gold.

Notice how gold has hit this level four times in the past two years. Each prior time gold bounced back hard. Will this time be different?

Rum might be a good option because if gold breaks down here, it very well could break hard.

Unlike gold, silver is nowhere near its recent lows. I don't know what to say, gold gets whacked, the miners seem to be holding up and silver barely moves?

Is this the long awaited disconnect between silver and the rest of the precious metals complex?

I will note that premiums remain HIGH on physical silver.

If my calculations are correct, JM Bullion is charging a premium of $11.46 per ounce of American Constitutional Silver!

The price of silver on the COMEX is $19.18 per ounce BUT the cost of US Coinage is running around $30.61 per ounce.

So there you have it!

Peace out and Stack On!