Mining stocks to soar and ‘blow your head off’: OIiver

Michael Oliver, founder of North Carolina-based Momentum Structural Analysis and a veteran market analyst, argues that the current gold and silver rally is the beginning of substantial moves higher for mining and metals stocks. 

“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,” he said. “And we’re literally on the doorstep right now.”

And silver will lead the next big move, not gold, Oliver told Northern Miner Group video anchor Devan Murugan this week. Watch the interview. 

“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.” 

Oliver, a futures-market veteran since 1975, built his reputation in part by anticipating the 1987 stock-market crash and later supplying institutional research to Wachovia. More recently, he called silver’s 2025 rally and forecast prices above $100 per oz. before the metal reached that level in January.

‘New reality’

Oliver argues 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,” he said.

“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 cash constantly decays in value because governments are always increasing its supply and their own debt. 

“The dollar’s real buying power is degrading, and that, coupled with well, the U.S. government debt market, the Japanese government debt market which led us to hell already,” he said. “We have to give them money to support them so they won’t dump our bonds. It’s a circle of printing.

“Suddenly we have huge statist debt problems that can’t be shrugged off.”