Gold Miners About To See Windfall Profits As Gold Has Its Highest Quarterly Price In History
This will be the catalyst that brings gold miners into the gold bull market.
Until the gold stocks enter the gold bull market, we are still in the earliest days of the gold bull market.
The Death Spiral of Debt, caused by the Fed’s Free Money Era after the 2008 GFC and insane spending by politicians, has put the world on an unstoppable path to returning to the Gold Standard. This is happening in real time with most generalist investors in the G7 countries ignoring it while the BRICS nations buy all their physical gold.
The generalist investors continue to buy stocks with bubble valuations in tech. The latest bubble are the artificial intelligence stocks. Plus the crypto currencies craze continues. They are oblivious to the not too distant past when the promise of the internet had the Dotcom stocks in a bubble that resulted in the Dotbomb when the bubble burst.
During the Dotcom Era, gold stocks were being given away as they are now, but when the Dotbomb hit the market, gold stocks blasted off and went into a 10 year bull market.
History is rhyming.
As I have mentioned in recent reports, I see the catalyst developing that will bring the gold stocks into the gold bull market. When the gold miners report their second quarter earnings, they will have windfall profits as they will be selling gold in the second quarter for around $300 or more than in the first quarter.
This will make the gold stocks hard to ignore by generalist investors. Which will result in a powerful wave of money coming into the gold stocks. They are so cheap on historical metrics and coming from such low bases, it won’t take a lot of new money to send them flying.
When the second quarter reports come out for the gold miners, you will start to see more commentary in the mainstream media about gold and the gold stocks. With more money managers on Wall Street and around the world seeing funds flowing into their hands to deploy into gold stocks.
The long suffering gold stock diehards are about to have their days in the sun and the sun will shine for a long time. Probably more powerful than the 2001 to 2011 gold bull market and longer lasting.
Returning the world to the Gold Standard, plus having the central bankers backing their debt IOUs and heavily diluted currencies in a more significant way, with gold as a dominant currency in international trade, will take time. During that time, I see gold seeing $20k in the next 10 years.
I’ve heard many market commentators that are bullish on gold say that they don’t want to see it go that high because they think the world would be going through a dismal economic period.
I would point out to them that the world is in a Death Spiral of Debt with high inflation, high interest rates, consumers taking on second part time jobs to make ends meet. That doesn’t sound very good to me.
I say bring on the Gold Standard. It will make politicians show some fiscal discipline and cut some of their outrageous spending. In my view, not only is it the best economic thing to happen, it will help fix the Death Spiral of Debt.
Leaving it up to the politicians and Fed is the most dismal economic thing possible. Three cheers for gold to hit $20k in the next 10 years.
In the meantime, let’s see windfall profits for gold miners from the highest quarter of gold prices in history during the second quarter. That brings the gold stocks into the gold bull market.
All the best,
Allan Barry Laboucan
Disclosure
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