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F E B R U A R Y / M A R C H 2 0 2 0
JUNIOR MINING
7.44 g/t Gold
over 34.78 Metres
High-Grade GOLD
High-Grade POTENTIAL
in the Golden Triangle
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2011. From there, gold has established a
well-defined 'Cup & Handle' chart pat-
tern with the Cup forming from 2012 until
September of 2019 and then the Handle
continuing into early 2020. This Cup &
Handle is also a very bullish indicator of
long-term strength to come. If the current
short term rally evolves into something
longer-term then one could expect a chal-
lenge US $1,900 level in the not too distant
future. We have already seen the gold price
jump due to the US-Iran conflict.
And let's not forget about silver. The
poor man's gold chart pattern is similar
to that of gold. Silver has recently gained
a few dollars and is currently trading at
about US $18/oz and has also formed mid
and long term Cup & Handle chart pat-
terns with near-tern resistance at about
US $20. Should the US $20 level give way,
the charts suggest that an advance to US
$35 and beyond is possible. Also work-
ing in silver's favour is the historic gold/
silver ratio. This ratio of US $1,550/US$18,
or about 86, is close to all-time highs set
the late 1900s when the last secular or
long-term commodities bull market began.
This ratio fell to a more normalized level
of about 40 when gold and silver peaked
in 2011. So by conjecture, if the next bull
market is beginning then silver should
outperform gold for the foreseeable future
and if gold is going to test its highs of US
$1,900 then the price of silver should more
than double to about US $50, just as it did
in 2011.
Copper and crude oil, two other com-
modities that are also key indicators of
market sentiment, have also been signal-
ling that perhaps a new commodities bull
market is upon us. The price of copper and
crude oil are very sensitive to changes in
the world's economic activity and both,
it seems, are suggesting that overall, the
global economy is active and expanding.
The price of copper, after establish-
ing a mid-term high of just below US $3/
lb earlier in 2019, had languished near
its long-term lows of US $2.60 for most of
the second half of the year. Then in late
December/early January, the red metal
quickly gained over $0.20 to form a 'Cup'
