The yellow metal, as some idiots call it, has been surging all year long, even more so since BREXIT. Year to date, GLD is higher by 26%. The gold stocks tracked in Exodus are higher by 145% on a median basis–FOR THE YEAR. That’s not a typo.
Even the biggest capped stocks are ripping. ABX has a cap of $24 billion and is higher by 198% for the year.
All of this is because central banks have gone literally infuckingsane, with their perverted distortions of reality, endless bailouts and a means to destroy every currency on the planet. Granted, the money being created is being sequestered in a very small area of the market, which only benefits the ultra elite. Maybe that’s why inflation for the very rich is running upwards of a 10% clip, while everyone else is staggered in the deflationary vortex?
Just a thought.
Seasonally speaking, July is a weak month for gold, down 55% of the time for an average loss of 1.854%. Next to October, this is the worst time to buy gold, which is why I like it.
In an Alice in Wonderland world where up is down and down is up, I like my chances long this ancient currency into what many expect to be a runaway market rally.
On a valuation basis, the median p/s ratio for the gold miners is 2.97x, almost triple that of 2014. However, if we look towards the high end of the range, set back in 2006-2009, stocks can run another 100% before they’re considered expensive again, on a price to sales basis.
Again, data provided by the indomitable Exodus.
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The money printing will not stop since it cannot stop.
Do you the equities markets will ever go down again?