Real move in mining stocks just beginning, veteran market analyst says

The current gold and silver rally is only the beginning of the real move in mining and metals stocks, says founder of Momentum Structural Analysis and veteran market analyst Michael Oliver.

“We’re about to see something out of the monetary metals and their miners that will blow your head off, that will take all those old patterns that you look at and just throw them in the can,” Oliver told MINING.COM host Devan Murugan on the latest episode of Top of Mine. “And we’re literally on the doorstep right now.”

For Oliver, the next big move will be led by silver, not gold.

“We argue silver is going to be the better place and it’s going to have a furious recovery,” he said. “For especially the next six months to a year, I suspect you want to be in silver and miners. It’s going to be quick, so you better be there or not be there.” 

A new reality

Oliver said the crisis the world is facing now will be historic.

“It will impact all major asset categories in major ways. I think gold, monetary metals will be a leader on the upside.”

“All of your assumptions are out the window, they don’t matter anymore. A new reality will come about. And I suspect some of the wave effects will be questioning central banks,” he said. “They create a problem, the bubble breaks, they come in, they print more.”

Oliver argues money units constantly decay because they constantly increase in supply. 

“The dollar value went up, but the real value didn’t, it’s a degradation in the money unit,” he said. “The dollar’s real buying power is degrading constantly.”

Watch the full interview: