Major Revaluation of Gold Shares Coming
Contributed Opinion

1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Barrick Gold Corp. and Agnico Eagle Mines Ltd.
2. Barry Dawes: I, my entities, and managed portfolios may hold ALL of the mentioned stocks. The position may change at any time. I determined which companies would be included in this article based on my research and understanding of the sector.
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It seems that gold didn't want to wait until September for this breakout.

The series of 1-2, 1-2, 1-2 steps (two more minor steps already in August) is leading to that wave 3 take off.

This breakout should lead to a major takeoff. The next stop is US$2800.

Friday's US$51 rise is a good indicator of more to come. Up US$100 intraday this week? The top of this channel comes in at around US$2800 in 2024 and that could be achieved quite quickly

Note the break out from US$2089 to US$2400 is $300. That would give the measured move to US$2800. The next higher parallel channel could come in at that US$3300 level for 2024/25.

This breakout will soon be followed by a VERY strong market for gold stocks. The Gann students have been pointing to 2023 being the 60-year cycle lows for both gold and U.S. stocks, so this new bull market has a very long way to go.

You will recall this long-term graphic for Nth American gold stocks. 52 years of bear market of goldstocks versus gold here. 50 years of a bull market ahead.

The major comment here is:

• Hyperbullish gold miners for a generation.
• Miners will increase 40x from 2024 levels.

Equally applicable here on ASX. From @StocksFormula:

 
The XAU had a 2.48% move on Friday to the top of its box.

That 13-year downtrend is being broken.

You should understand the importance of this breakout.

All those 1-2, 1-2, 1-2s are building up very nicely on the bigger picture as well. Wave 3 of WAVE 3!

The great acceleration is coming in gold stocks.

Gold stocks versus gold:

• Should move from 0.60 to 0.225 = 275% vs a strong gold price
• The big rerating will come through higher earnings

Gold stocks versus S&P500:

• Massive outperformance is coming as gold earnings pick up.
• Gold stocks will go from pariahs to market darlings!

Earnings drive share prices.

Stocks

Newmont Corp. (NEM:NYSE) reported US$834m Q2 earnings on US$2347/oz, up 32% in March Qtr (US$2090/oz) and up 213% in June Qtr 2023 (US$1965/oz).

At US$2500 on 1.6m oz/qtr, this is a further US$240m gross revenue addition.

Barrick Gold Corp. (ABX:TSX; GOLD:NYSE) reported US$557m Q2 earnings on US$2344/oz, up 67% on March Qtr (US$2075/oz) and up 66% on June Qtr 2023 (US$1972/oz).

At US$2500 on 0.95m oz/qtr, this is a further US$140m gross revenue addition. 

Agnico Eagle Mines Ltd.'s (AEM:TSX; AEM:NYSE) US$535m Q2 earnings on US$2342/oz, up 42% on March Qtr (US$2070/oz) and up 67% on June Qtr 2023 (US$1975/oz).

At US$2500 on 0.9m oz/qtr, this is a further US$135m gross revenue addition.

Head the markets, not the commentators.