The rest of the game will be even better.
The chart below shows the Gold/S&P 500 ratio vs the inverted Fed Funds Rate.
When the Fed cut rates in 2007, this kicked off a massive four year run into real assets, led by gold, and away from paper assets measured by the S&P 500.
In 2011 Gold and the S&P 500 nearly rose to a 1 to 1 ratio, which would now value gold at $5,700/oz
The last time the Fed led off with a 50 bp cut was in 2007.
Over the next four years, the S&P 500 fell up to 50% in less than two years.
Four years later, stocks were still down 20%.
While gold rose 168% over the same period.
If gold does something similar now we would be looking at $7,000/oz gold in 2028.
The Fed rate cut was just the opening kick off. The shift back to real assets will take years.
Gold’s recent breakout to new highs, is the sign that the yellow metal is going to rise much higher.
Investors have been ignoring gold stocks for years even despite strong gold prices.
I’ve never seen value like this before in the precious metals sector.
You have an opportunity to get in before the mad rush.
They say there’s no fever like gold fever, and we haven’t seen anything yet.