Fat Tail Daily

Dear Reader,

Look at the chart below:

Fat Tail Investment Research

Pay close attention to the price of gold (the yellow line) and the performance of gold mining stocks (represented by the orange and blue lines).

See how the gap between them continues to widen since around mid-2023, even as gold stocks are starting to recover from their selloff?

This is believed to be a GREAT SIGN to consider loading up on gold mining stocks.

Now, you might be wondering: shouldn’t you buy gold when it is rising faster?

If you study market trends, you’ll know the answer:

History shows us that in a bull market, gold stocks accelerate from the momentum… closing the gap as they run.

Just look at the 2015–16 bull market.

The Financial Review described it as a time when ‘The Australian gold sector performed spectacularly, far in excess of the gold price’.

Fat Tail Investment Research

It happened again during the 2019–20 gold bull market.

Just look at how junior mining stocks cut through and overtook gold:

Fat Tail Investment Research

Of course, there is no guarantee that this will be repeated, as these stocks carry high risk and are highly volatile, but…

…fast forward to today…

…and I’m seeing four bullish signals that tell me gold’s ‘closing the gap’ event for the current bull market is near.

One is that the Federal Reserve looks set to announce multiple rate cuts this election year. This could prompt the spot price to soar higher still, and the market to rally.

I reveal the other three signals in a new video that you can watch here.

And I’ll tell you the specific mining stocks I think could benefit most from gold’s move.

Click here to watch now...

Regards,

Brian Chu Signature

Brian Chu,
Editor, Australian Gold Report

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