This article was contributed by Lior Gantz of The Wealth Research Group.
Gold stocks might have peaked for the COMING WEEKS. On August 5th, we may have SEEN THE TOP for the time being.
Just how amazing was the RALLY, which started on March 18th?
- The GDX index, which is comprised of the world’s BIGGEST AND most recognized gold and silver miners, has gone from $19 to $44.50, a 134% return in LESS THAN five months.
Year-to-date, the GDX index is up 37%, compared with the NASDAQ 100, which is up only 33%!
With all the noise that the media is making about tech being the GREATEST PLAY ever, a simple low-fee position with GDX has beaten all of these cloud-servicing, Artificial Intelligence and payment processing wonder kids of the cyber world.
- The GDXJ index looks to have ALSO TOPPED, and is up 34.9% in 2020, but HOLD YOUR HORSES; that’s 400% more than the average S&P 500 annual return, so I assume you’re not feeling TOO BAD about that!
Still, in a mature BULL MARKET, the GDXJ would handily beat the GDX, so the fact that it isn’t is indicative of FURTHER UPSIDE POTENTIAL.
The way American finance works, with the FEDERAL RESERVE having so much authority to CREATE CURRENCY, the markets have ceased to be “free.”
The big problem with the rich getting richer isn’t that the poor are FRUSTRATED, since entrepreneurs COULD INSPIRE the masses to follow them; the problem is that the wealthy aren’t doing anything that’s REPEATABLE or leaves a trail of guidelines, since all they’re doing is capitalizing on their UNIQUE ACCESS to cheap credit.
When the poor don’t HAVE A PRAYER to join the rich, elevating the collective wealth of the nation, something IS WRONG!
If someone is doing ALL HE CAN and still gets nowhere, we have a structural failure.
For now, this entire CREDIT ORGY is fueling a great party, but what the participants don’t know is that once the music stops, they’ll be asked to pay for this shindig and it WON’T COME CHEAP!
A country like the USA can create many trillions in currency to offset the revenues and the income lost by the pandemic, but it can’t put the genie back in the bottle; this is CURRENCY DEBASEMENT.
The credit expands and generates wealth for equity holders, while the average person GOES DOWN!
No country can thrive as a bastion of capitalism when its citizens have no part in the FUN OF PROFITS, but only toil from dusk ‘til dawn to make ENDS MEET.
I own gold, silver and other safe havens for this reason.
THINGS ARE NEARING a breaking point; it’s just the way it is, unfortunately!