Market Vectors Junior Goldminers ETF (GDXJ)

[DarkPool]

Free cash flows for mining companies hit all-time highs in 2016, breaking the record set in 2011, but they are on pace to smash the free cash flow record once again in 2017! And yet the HUI is roughly 72% lower than it was in 2011. That is how irrational things have become in the gold and silver sector, but it will not be a state of permanence. The purpose of the psychological warfare conducted in the paper markets is to keep people away from gold and silver and also to get them to sell.

Games will continue to be played in the paper gold market so that the commercials can cover short positions. But the bottom line is that gold is very close to a historic upside breakout, despite volatility. That is why Western central planners have been fighting like hell to delay this major breakout in gold. No matter how long it takes, time is now on the side of the bulls. As for the bears, time is running out for the orchestrated takedowns…tick-tock, tick-tock.