Episode
Brutal Summer Ahead for Gold Stocks?
- Published
- Jun 14, 2026
- Duration seconds
- 375
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Summary
I was on a panel with veteran geologist Brent Cook earlier in the week and something he said rather struck me. “It’s shaping up to be a brutal summer for mining companies.” Brent Cook Looking at the chart below, it’s hard to disagree. The Gold Miners Bullish Percent Index has fallen to zero. Not 5 or 10, but zero. That’s lower in the in the crash of 2008 and during the Covid panic. It has only ever reached this level during the darkest days of the great gold bear market of 2011-16, and even then only twice. This chart measures the percentage of gold mining stocks that are on Point & Figure buy signals. If every stock is on a buy signal, the reading is 100. If none are, the reading is zero. A reading of zero does not mean prices cannot fall further, only that not a single stock in the index is in a technical uptrend. Readings like this only occur at moments of extreme pessimism. But what makes today’s reading so unusual is the backdrop. In 2008, everything was crashing. In 2013 and 2015, gold itself was in a vicious bear market. During the Covid panic everything was crashing. Today, gold’s above $4,000; silver’s above $60. The fundamentals for higher prices - central bank buying, irretrievable government spending and, in the case of silver, industrial demand - remain. Yet the mining shares are in the swanny. And these are monthly charts. Such extremes take time to develop. Daily and weekly indicators can hit zero fairly easily. Monthly indicators rarely do. This is an extraordinary breadth washout. Why is it happening? Inflation (in the true meaning of the word) When gold and silver went bananas late last year and early this, mining companies took advantage of the frenzy, as they always do, to raise capital. Bucket loads were raised. Typically in Canada there is a four-…