Jordan Roy-Byrne – Precious Metals Are A Counter-Cyclical Investment And Will Benefit From Further Pullbacks In General Equities
Jordan Roy-Byrne, Founder and Editor of The Daily Gold, joins us to discuss why he is still convinced that for a meaningful and sustained real bull market in the precious metals, that we need to see further corrective moves in the us equity markets. We review the potential path for Fed policy, bonds, interest rates, and the eventual point where the central bank will be forced to pivot back to more accommodative policies. It is this point where gold, and later silver and the mining stocks will eventually diverge from the general markets, as a counter-cyclical investment.
While Jordan is very bullish in the medium to longer term fundamental and technical setup in the PMs, we review the more near-term pressure based on a return in gold to the 40 month moving average, or even test the $1675 support level again, based on what he is looking at on the monthly charts. Jordan is looking to $18.75 as strong support for Silver, provides support levels in both GDX and GDXJ where he’d expect a bounce in the very near-term. He’ll also be watching the 10-year and 2-year yields in the bond markets carefully for signals of a turn.