Categories: Stock Market / Precious Metals
Topics: Precious Metals / Gold Stocks

Contrarians and billionaires alike are piling into this low-priced gold stock

Tons of whipsaw action in the markets of late as odds for a March rate cut by the Fed are pretty much anyone’s guess at this juncture.

All the while, gold has been holding steady above the psychologically important US$2,000 mark and remains within very close striking distance of all-time highs of around US$2,080 per ounce. 

But what about the gold equities?

They’ve barely budged or are down significantly over the last several quarters. And that goes for everything from the junior explorers to the world’s largest producers like Barrick and Newmont. 

So what’s driving this paradox between gold as a commodity and the gold miners?

Well, you really don’t have to look much further than the market’s frenetic obsession with the Fed whereby traders have now somehow collectively convinced themselves that high inflation is actually bearish for gold.

That’s really the main driver of why we’re seeing this lingering disinterest in the gold equities amidst a backdrop of relatively strong gold prices.

Of course, today’s golden paradox stands in direct contrast to centuries of real life documentation of gold standing alone as a staunch hedge against inflation and geopolitical uncertainty.

So much for the ‘gold as a trusted store of value’ argument! We certainly are living in interesting times!

Just like the fleeting attention span of today’s teens… traders have fallen into that same trap as it relates to gold.

In other words… more push and pull to come for at least the next quarter or two. 

In the long run, however, gold will absolutely have its day in the sun as the US continues down its monetary death spiral, which currently stands at US$1 Trillion-plus being spent annually just to service the federal debt. 

As the purchasing power of the greenback crumbles (and that it will!), and as we head into a protracted negative real rate environment, gold, which is valued in US dollars, will have no place to go but up.

Gold equities — and silver equities, for that matter — will follow suit.

Another positive factor for gold is the massive jump in central bank gold buying, which commenced in 2022 and has continued to show strength entering 2024.

To me, there’s little doubt that the central bankers are running the numbers on some highly proprietary data and, in response, are making a hefty bet that holding large amounts of the yellow metal amidst a backdrop of global fiat currency degradation is a wise move that’ll pay handsome dividends down the road.

In other words, in what can only be described as a monetary race to the bottom… the only true winner will be gold.

And that brings us back to the gold equities and the wealth-building opportunity at hand for foresighted contrarians.

The idea, of course, is to be positioning early and low while the investing herd looks elsewhere.

And those steadfast contrarians among us won’t be waiting long because…

There's a brand-new gold investing report from Gerardo Del Real of Junior Resource Monthly, that is now live.

Inside, he outlines how billionaires are positioning in gold, plus the under-the-radar, high-potential gold stock they’re piling into. 

You’re in the right place to receive it… simply keep your eyes peeled tomorrow morning!

Yours in profits,

Mike Fagan
Editor, Daily Profit Cycle