The price of gold has been treading water for 10 years while the investment fundamentals have improved dramatically. That is why, in our opinion, significant upside lies ahead for gold and related equities.
This version of the original article by John Hathaway (sprottmoney.com) has been edited [ ] and abridged (…) to provide you with a faster and easier read. Also note that this complete paragraph must be included in any re-posting to avoid copyright infringement.
Gold has been driven by:
- problematic inflation,
- prospects of a recession,
- excessive public and private debt,
- widening credit spreads,
- the onset of a bear market in equities and bonds,
- a growing loss of confidence in the Federal Reserve and now
- Putin’s war introduces yet an additional reason to stoke investment demand for the yellow metal
…It is our opinion that the investment fundamentals have improved dramatically for gold. That is why, in our opinion, significant upside lies ahead for gold bullion and gold mining equities.
Source: Bloomberg as of 3/31/2022 (reflects past 35 years). Gold is measured by the GOLDS Comdty Spot Price and gold equities by the Philadelphia (PHLX) Stock Exchange Gold and Silver Sector Index (XAU). The Philadelphia (PHLX) Stock Exchange Gold and Silver Index (XAU) is used versus the Philadelphia (PHLX) Stock Exchange Gold and Silver Sector Total Return Index (XXAU) for its longer historical track record. Included for illustrative purposes only. You cannot invest directly in an index. Past performance is no guarantee of future results.
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