Something is happening with gold, and it isn’t just against the dollar as it is all strong and muscly in multi-currency terms. Yes, you could make the case for the “banking crisis” being the reason why gold has popped up over the last month. However, gold has been etching higher over the last six months in dollar terms and longer in other currencies.
Gold in SGD, AUD, EUR, CNH, JPY indexed to 100 – year-to-date
And it seems to have been working off an overbought condition over the last couple of years. If this was a flash in the pan thing for gold, it should have given back all its gains of 2020 on the back of Covid (as the Nasdaq has). Also note gold was already moving higher in 2019 way before Covid.
So it would seem to us that the COVID scam and the recent banking crisis/circus is just “fleas on a dog’s back” for gold — there is something “systemic” going on. The lack of trust on a global scale is revealing itself in gold.
We have a strong conviction that this is the tip of the iceberg (i.e. the upside of gold in multi-currency terms is a long way from being done).
Long term it would seem that the odds are in favor of gold outperforming the world stock market.
I know there is a lot to take in, and I’m going to show you yet another chart, but this is truly revealing.
Gold in SGD, AUD, EUR, CNH, JPY indexed to 100 – last 20 years
This takes us back to 2000 — 20-odd years ago. Multi currencies against the yellow metal indexed to zero. Is this not monetary debasement in a simple picture?
Obviously, it depends on where you take your time period from, but from 1990 the world stock market is up some 380% whereas gold is up 450%. So it could be argued that all the gains in the world stock market have been on the back of monetary debasement.
There is one key thing we left out in the chart above — the effect of compounding dividends. If we include dividends and assume they are reinvested, then the return of the world stock market goes to 710%, but around half of those returns are accounted for by monetary debasement.
Our thinking is that, longer-term (a 10-year view), holding a “whack” of your money in gold (physical or an ETF) in preference to the general equity market (or other growth orientated ETFs) isn’t a stupid idea and is actually a no brainer.
Are we on the verge of massive outperformance of gold relative to the S&P? Like the 1970s or even from 2000 to 2013? Well, stranger things have happened. Note that when gold gets going, the trends tend not to last for just a couple of years but rather 10 years at least.
Here is where things are far from being a no-brainer… What is going to outperform over the next 10 years or so? Gold or gold miners?
From 1983 to 2008, gold and gold miners tracked each other reasonably well. Then, from mid-2008 (the onset of the GFC), something happened and gold has outperformed miners dramatically. Sorry, but 1983 is as far back as the XAU (Philadelphia Gold Miners Index) goes.
Gold miners (XAU) and gold spot indexed to 1 as of 1983
Zooming into the period from mid-2008 until present, we can see in the chart below that gold miners have underperformed gold by some 70%, although they have moved in lockstep since the start of 2015 (eight years).
What is the reason for this underperformance?
Some say it is because of the increase in costs from energy. Yet, from 2008 until present, crude (a good proxy for diesel prices) has gone down relative to gold.
The contrarian in us suggests that we are approaching a time for gold miners to outperform gold. But we are lacking a fundamental reason for that genius idea.
Stacking up relative to the S&P 500 we can see in the chart below that the gold miners have performed more or less in line with the S&P 500 since the start of 2015.
And gold miners are as out of favor as they were during the height of the TMT/dot-com bubble of 2000.
In a nutshell:
- We don’t think it is going to be difficult to outperform the S&P 500 with a basket of gold miners over the next 10 years
- Whether or not you would be better off investing in gold miners or gold, toss a coin… or go 50/50 GDX and GLD — Newmont and Krugerrand or whatever tickles your fancy.
What else?
Is gold foretelling us of an impending monetary crisis?
Well, we do know one’s coming so…
Editor’s Note: The Western system is undergoing substantial changes, and the signs of moral decay, corruption, and increasing debt are impossible to ignore. With the Great Reset in motion, the United Nations, World Economic Forum, IMF, WHO, World Bank, and Davos man are all promoting a unified agenda that will affect us all.
To get ahead of the chaos, download our free PDF report “Clash of the Systems: Thoughts on Investing at a Unique Point in Time” by clicking here. Article cross-posted from International Man.
For Emergency Preparedness, Don’t Forget the Meds
Being prepared is more than just a good idea—it’s essential. We stock up on non-perishable food, bottled water, flashlights, and first-aid supplies, but one critical aspect often gets overlooked: access to vital medications. What happens if pharmacies close, prescriptions can’t be filled, or you’re cut off from medical care during an emergency?
That’s where Jase Medical steps in, offering a reliable solution to ensure you and your family have the medications you need when it matters most.
Jase Medical specializes in emergency preparedness kits designed to provide peace of mind through physician-reviewed, prescription medications delivered right to your door. Their flagship product, the Jase Case, is a comprehensive emergency antibiotic and medication kit priced at $289.95.
This kit includes 10 essential medications—five life-saving antibiotics and five symptom relief meds—that can treat over 50 common infections and illnesses, from urinary tract infections and pneumonia to skin infections and traveler’s diarrhea. With 28 add-on options available, you can customize the kit to fit your specific needs, including a KidCase for children ages 2-11.
The process is straightforward and hassle-free. Simply visit Patriot.tv/meds, complete an online evaluation, and have your order reviewed by a board-certified physician. Once approved, the medications are shipped discreetly from a licensed pharmacy to your U.S. address (with plans for Canada shipping coming soon). Each kit comes with detailed Med Cards outlining symptoms, dosing, and usage, making it easy to administer even in high-stress situations. These medications are shelf-stable and designed for long-term storage, empowering you to handle medical emergencies without relying on external help.
For those on the move, Jase Medical also offers the Jase Go kit for $129.95, a compact travel med kit covering over 30 common conditions encountered during adventures or trips. And for ongoing needs, Jase Daily provides an extended supply of your prescribed chronic medications to safeguard against disruptions in supply chains or extreme weather events.
Don’t just take our word for it—thousands of satisfied customers have given Jase Medical a 4.9-star rating, praising its role in true preparedness. As radio host Glenn Beck warns, “The supply lines for antibiotics already are stressed to the max. Please have some antibiotics on hand… You can do it through Jase.”
Whether you’re prepping for a hurricane, a power outage, or simply the uncertainties of daily life, Jase Medical ensures you’re not caught off guard. Head to patriot.tv/meds today to customize and order your emergency kit—because when it comes to your health and safety, it’s better to be prepared than sorry.
When you need to buy a loaf of bread or a can of beans, who’s gonna have change for a 2k gold piece?
When TSHTF, don’t put it past them to go for your guns – and your gold.
What will you do when conditions have stabilzed – trade it in for digital currency?
What if the powers that be do a Roosevelt and order you to turn it all in?
A gold IRA will be worth less than the paper it’s printed on when the collapse occurs.