I’ve explained in recent weeks how the monetary elites are looking to engineer higher gold prices to generate inflation since nothing else has worked.
GDX tracks the overall performance of gold miners, where 55.4% of the companies are listed Canadian stocks. In other words, the gold euphoria has gone global.
Gold bugs believe that, when the ticking debt bomb explodes, the stock market will crash and gold will fly through the roof.
There’s clearly plenty of momentum. And gold will probably re-test the 2015 high of US$1,307 per ounce this week. If this happens, Aussie gold stocks should benefit.
Gold has thrived on the ‘wait and see’ approach by central bankers this year. Obviously, economic uncertainty has grown.
At times, gold behaves like a commodity. It tracks the ups and downs of commodity indices. At other times, gold is viewed as a safe haven investment.
Why should gold bugs keep an eye on crude? Because gold’s near-term future will be affected by the continuing slump in oil.
Governments and central banks may try to take private gold again. They hate gold because it gives individuals a way to protect against the devaluation of paper money — inflation.