Gold investors have been patient.
We’ve been waiting for confirmation of our deepest held beliefs about how the world works – or how it’s supposed to.
The longstanding assumption is that we will be vindicated by sky-high gold prices and soaring gold stocks.
We will be.
The question is what would be the catalyst to vault gold higher?
It’s one thing to know what is likely to happen, but it’s quite another to know when and how.
I believe we’re very close to the “when.”
And I’m now certain of the “how.”
I believe we’re going to see money cycle out of AI stocks and into gold.
It won’t happen all at once. It will take months. We may see gold fall lower in the meantime.
But make no mistake: the second AI starts to weaken (which may already be occurring) investors will start to look for other opportunities – and they’ll find gold.
How do I know?
Because this exact scenario has played out several times before: in the 1930s, the 1970s, the early 2000s.
In all of these scenarios, stock valuations hit all-time highs relative to US GDP, crashed, and rushed into gold.
The Great Depression sent stock prices down 80%. Gold jumped 69% thanks to a revaluation from FDR.
Between 1970 and 1974, stock prices fell 25% while gold soared 4X.
Between 1999 and 2005, stocks fell 15% while gold rose 76%:
The lesson? Whenever stock prices become too expensive, gold is the beneficiary as investors cycle out of risk and into safety.
Today, stocks led by AI firms are far above the levels we saw during the dot-com bust. They’re more expensive than they were before the Great Financial Crisis. They’re beyond levels we saw in 1929.
The question isn’t how – but when.
And I think we’re close. When money floods out of AI and the stock market in general, you’ll want to already have positions built in gold and gold stocks.
That’s why I’ve put together a detailed brief about exactly how to do so.
You can read this full brief here, for free.
The amount of money that’s flowed into AI stocks is nothing short of historic. Something like $13 trillion went into AI stocks in just the past three years. If even 10% of that money rushes into gold and gold stocks, it will mean the biggest gold boom of our lives.
Don’t wait til the flood comes: check out my “great rotation” research here.
Best,
Garrett Goggin, CFA, CMT
Lead Analyst and Founder, Golden Portfolio
