Gold’s Super Silent Bull

Atlas Pulse Gold Report Issue 102;

The price of gold is at an all-time high and an all-time high in real terms. Silver has kept up but should be 50% to 150% ahead, and the miners are still asleep. Institutional investors are ignoring this great opportunity because gold is not in their benchmark, and they remain highly confident in equities. What could possibly go wrong? 

Going back 30 years, silver and gold have performed in line, turning $100 into around $700. Silver had been much higher in 2011 and is yet to regain those heights, but it will when the animal spirits return to the gold market. That is what this piece is about. Gold is trading at an all-time high while investors are watching from the sidelines.

Moreover, the gold miners, which are also supposed to smash gold during bull markets, are up just 56% in all that time. They have been making slow progress since the 2015 low. Some say valuations are much too low, while others feel they are terrible companies, but whatever your views, conditions are ripe. I am most focused on the fact that most investors ignore them despite the elephant in the room, which is the gold super bull market.

Gold, Silver and Gold Miners over the Past 30 Years

This chart expresses the same information relative to gold, rebased to $100 in 1995. Notice how silver has only ever lagged gold on rare occasions, such as during the 2020 pandemic crash. A rally would easily surpass 50% from here, and a 2011 rerun would be 150%.

Silver and Gold Miners Relative to Gold over the Past 30 Years