8/13/2021 9:00am EST - Trading Lab Morning Email

I couldn't help but notice that gold is trading back at $1763 this morning. Exactly where it was at the end of last week before Sunday night's futures meltdown. Gold is currently on the verge of printing a bullish 'hammer' candlestick on the weekly chart, and a close above $1765 will actually mean that gold ended higher for the week.

Remember Tuesday morning's email highlighting the Daily Sentiment Index reading at 8? There's still a few hours of trading left this week so I will stop here and pick up this conversation on gold sentiment this weekend.... (tune in on for the Weekend Video tomorrow morning).

Yesterday, we received a SEDI filing from none other than Ross Beaty, Equinox Gold Chairman and billionaire mining investor.

After reviewing Mr. Beaty's SEDI filings it turns that this is his first EQX purchase since this one in March 2020:

Ok, some of you are probably saying "$2 million isn't a lot for a guy worth $1 billion or more" - that is true, however, he doesn't buy Equinox shares very often and he is a long term investor that isn't looking for a quick flip. His open market purchase of even more EQX shares can signal only one thing, that he sees a lot of value at these share price levels.

It's also worth noting that his $36 million buy at sub-$7 per share in March 2020 was nothing short of brilliant. He had a more than $60 million gain on that transaction at EQX's peak share price 5-6 months later and he didn't sell a single share.

Let's summarize this week in gold:

  • Sunday night gold futures washout.
  • Gold DSI (Daily Sentiment Index) hits 8, the lowest reading since the March 2020 low.
  • Ross Beaty has begun buying millions of dollars of gold miners on the open market.
  • Bearish articles on gold all over CNBC.
  • NOON UPDATE: Gold is closing the week on its high, up more than $100 from Sunday night's low

I'll take it. 


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