Chris Vermeulen: Gold, Silver, Miners to Hit Major Bottom; Multi-Year Rally to Followyoutu.be
The gold price has moved higher over the last month and a half or so, but Chris Vermeulen, chief market strategist at TheTechnicalTraders.com, believes the yellow metal’s rise isn’t going to last.
Speaking to the Investing News Network, he said that while metals could hold up heading into the end of the year, he’s still anticipating a “major top” in the stock market, as well as a corresponding rise in the US dollar.
“If that happens, it’s going to put pressure on metals. And I do think we’re going to see gold break below US$1,600 (per ounce) and start to go much lower in 2023,” he said. But there’s light at the end of the tunnel.
“I do think probably in the first half of 2023, gold and silver and miners are going to put in what I think is going to be a major bottom — a supercycle bottom that’s going to lead to a multi-year rally,” said Vermeulen.
Looking specifically at mining stocks, he said that the situation is similar to what happened two decades ago.
“This is like the start of a 2001 kind of market low where gold miners could rally hundreds, thousands of percent for several years and just keep on going. This is the setup that people have been waiting for,” Vermeulen explained during the interview. “This to me is like the repeat, your second opportunity to catch the precious metals mining stocks — the juniors, the micro-caps — for these crazy, unbelievable runs. But again, they’re going to be under pressure until we get to these points.”
When it comes to the broader market, Vermeulen expects 2023 to be a “reset year.” In his view, it will also be a time for people to take ownership of their portfolios and actively manage their investments. “You can’t really just do the buy and hope strategy,” he said. “If you just buy and hope you’re going to go through a rollercoaster ride that is not fun.”
Watch the interview above for more of Vermeulen’s thoughts on precious metals, the US dollar, inflation and more.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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