After Jap Carry Trade, Trump Pump for crypto and S&P risk off and now Papa Jerome’s hawkish ‘kill the stock market with higher for longer’ statements, gold has been the first to recover, showing the universal/global need for the precious metal.
What was interesting in 2024 was the lack of rotation into the Gold Miners, particularly the junior/developer space.
Here’s a chart showing the GDX (Basket of Gold Producers EFT) and GLD (Gold Futures ETF). Or the GDX GLD ratio. GLD has gone up with the Gold price recently while GDX diverged from the GLD in ‘22 bear market with the first higher for longer rally by the Fed.
Sooner or later big money will rotate into gold as they see the attenuation to market shocks, 1st Gold Producers, 2nd Gold Developers (WWI) and 3rd Explorers.
Then peeps like Old Mate who have been playing musical chairs with WWI price action will get caught when the music stops.
That’s why I’ll keep nibbling away next year, grow my position, Big Money will see how insanely cheap the Goldie’s are and I want to have as much of Old Mates position in my pocket as possible. DYOR of course
WWI Price at posting:
1.3¢ Sentiment: Buy Disclosure: Held
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