Gold And Mining Stocks Vs Stocks – Many Will Be Surprised

The precious metals sector – gold, silver and mining stocks – is in the early stages of a rabid bull market. The mainstream media has been dead silent on the performance of the precious metals, which is not a surprise to those of us who have been involved in the sector since 2001, when gold bottomed at $250, silver was around $4 and the HUI index was at 45.

Since September 2018, gold has significantly outperformed the stock market. In fact, per this chart below, measured in terms of real money the Dow is in a bear market – down 36.3% since September 2018:

Dow Vs Gold 2018 to Present

This chart shows the performance of the SPX vs GDX for the last 52 weeks:

SPX vs GDX 1 Year – Daily Chart

Measured against the GDX mining stock ETF, the S&P 500 is down 42.1% since mid-March. In other words, the S&P 500 is in a bear market when expressed in terms of a mining stock index. Again, the silence from the mainstream financial media and the big Wall Street banks is deafening.

This bull move has a long way to go. The momentum junkies, macro hedge funds and generalist equity funds have yet to discover the precious metals sector. The retail stock jockeys chasing bankrupt stocks to the moon can’t spell “gold” yet. Eventually, when reality invades the stock market, an epic crash it will be followed by a move in the precious metals sector that will shock most and even surprise many precious metals bugs….Got gold?