Michael Oliver, founder of Momentum Structural Analysis, told MINING.COM that the current advance in gold and silver marks the early stage of a far larger move in mining and metals equities. Speaking with host Devan Murugan on the publication's Top of Mine program, Oliver said the monetary metals and the companies that produce them are positioned to break the chart patterns investors have relied on for years. He placed silver at the front of that move and described a recovery he expects to unfold over the next six months to a year, arriving fast enough that late positioning would forfeit most of the gain.
Oliver tied his outlook to currency debasement. He argued that money units decay steadily because their supply keeps expanding, so a rising nominal dollar figure can sit alongside flat real purchasing power. "The dollar's real buying power is degrading constantly," he said. He expects the coming period to reach across every major asset class, with monetary metals leading on the upside, and he anticipates renewed public scrutiny of central banks as asset bubbles deflate and policymakers respond by expanding the money supply again.
The remarks follow a strong August for precious metals. Silver climbed roughly 20 percent during the month to trade near $70 an ounce, and US listed silver producers outpaced the metal itself. Published analyst forecasts for where silver settles remain widely spread, with year end targets ranging from the high $60s to well above $100 an ounce. Oliver's call rests on structural conditions in the US bond and currency markets.
Source: MINING.COM - https://www.mining.com/real-move-in-mining-stocks-just-beginning-veteran-market-analyst-says/