• 1,050 days Will The ECB Continue To Hike Rates?
  • 1,051 days Forbes: Aramco Remains Largest Company In The Middle East
  • 1,052 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,452 days Could Crypto Overtake Traditional Investment?
  • 1,457 days Americans Still Quitting Jobs At Record Pace
  • 1,459 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,462 days Is The Dollar Too Strong?
  • 1,462 days Big Tech Disappoints Investors on Earnings Calls
  • 1,463 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,465 days China Is Quietly Trying To Distance Itself From Russia
  • 1,465 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,469 days Crypto Investors Won Big In 2021
  • 1,469 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,470 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,472 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,473 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,476 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,477 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,477 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,479 days Are NFTs About To Take Over Gaming?
  1. Home
  2. Markets
  3. Other

On The Verge of a Gold Stock Explosion

It's probably the #1 question on gold stock investors' minds. Are we on the verge of a repeat of the 2008 wipe-out.

Just by the very fact that we have had so many subscribers ask us this question, we can almost on this evidence alone say no. Massive crashes never happen when everyone is looking for them and afraid of it.

However, there is much more evidence than this.

The most important is the money supply. True Money Supply (TMS), the Austrian economics method for calculating the money supply, is in a much different position than it was in 2008 pre-crash.

True Money Supply

In 2008 it had been close to 0% growth for two years. Now? In the last three years it has been between 8-18% annual growth and looks to be spiking higher again in recent months.

Fact: You don't have serious market crashes - not in nominal terms - when the money supply is increasing at a rapid rate.... like it is now.

For further evidence, let's take a look at the HUI Gold Bug Index (a basket of major gold stocks) versus the Dow Jones Industrial Average (INDU) in 2008 versus now.

Notice in 2008 how the gold stocks actually led the INDU to the downside, in a big way.

Dow versus Gold Bugs Index

Now, let's look at this last year... which includes the most recent market correction.

Dow versus Gold Bugs Index

Gold stocks have been outperforming the INDU throughout the year as well as into the last few weeks. This is a very large difference from 2008.

If gold stocks were to start to plunge from here (20%+) then we'd have to re-assess. But this is looking quite unlikely with the current market action.

In fact, Ed Bugos, TDV Senior Analyst, is expecting a VERY profitable fall and winter for gold stock investors based on all his indicators.

With gold nearing $2,000/oz, it is really only a matter of time.

 


Subscribe to TDV to see what Ed Bugos' top picks are for the coming gold stock explosion. We will be expecting outsized performance in the gold stocks... to the tune of triple digit percent returns in the coming few years... and even four digit percent returns aren't out of the question. If we are right it will be like buying internet stocks in 1998. Hold on to your hats!

 

Back to homepage

Leave a comment

Leave a comment