Gold is a staple of the world financial market and is a must in every portfolio. Yeah it’s boring and doesn’t move very much and there is a limited chance that stacking gold bars will make you spectacularly rich. However, in uncertain times and inflationary periods gold is considered a safe haven in relation to dying currencies. Most importantly, as the United States continues to weaponize the USD upon its “enemies”, more and more countries will begin to move away from the world reserve currency and rely more on hard assets such as gold to hedge. Russia has already pegged it’s currency (Ruble) to a gold backing. Countries with high amounts of gold and low amounts of trust in the US (China, Brazil, India) will follow suit. Bottom line for me is simply: If the Central Banks and Governments of the world are stacking gold in their vaults, so should you.

While I do love the physical asset, I am convinced that mining stocks will outperform. Gold mining companies as well as gold royalty companies typically receive higher valuations when the price of gold rises. This is due to their increased reserves and future cashflows. During the Great Depression gold mining stocks outperformed nearly every other asset class. If we truly are headed towards global financial instability than these stock are primed for long-term bull run.

Current Outlook: Gold is at new all time highs! There are good entry points at the moment as stocks move higher and recession fears are pushed off. I would expect to see gold miners catch up to the higher price of gold. Wait for pullbacks and stack accordingly.

Long-Term Outlook: I believe in the next decade we will see a commodity super cycle led by precious and industrial metals. Accumulation of mining stocks will be a decent long term hold as inflation continues. More wars, pandemics, false flags, other crisis’ will continue to push gold higher and surpass ATHs.