Founder’s Note: I’m ripping through as many charts as I can LIVE and in REAL TIME… Chartapalooza! is tomorrow at 11 am ET… Be sure to let me know what you want to see… – JC
Gold mining stocks have doubled this year.
This year. Already twice the value they had when they ended 2024.
In fact, the Philadelphia Gold & Silver Index (XAU) is on pace for its greatest year ever.
It’s All of Them
Here’s a chart of the performance of Gold Mining Stocks (GDX), Junior Gold Mining Stocks (GDXJ), Silver Mining Stocks (SIL) and Junior Silver Mining Stocks (SILJ) – all up triple digits this year:
I’ve been doing this a long time.
I was even a Gold Bug 20 years ago, although it turns out I was just a trend follower.
I’ve never seen performance like this from the group – across the board.
They Don’t Own Enough
Here’s the latest allocation breakdown published by the BofA Global Fund Manager Survey:
You can see that almost 40% of fund managers don’t have any Gold at all.
Only 6% of fund managers are holding more than 8% of their portfolios in Gold, which is less than it was the month before.
What are they waiting for?
Based on the performance of Gold and the mining stocks, I would have expected to see a higher allocation among fund managers.
But we’re not.
There’s still plenty for them to buy, which should provide further tailwinds for the price of the metal and the stocks.
Big Base in Silver
When you zoom out in the price of Silver, you’ll find one of the longest periods of accumulation in any market on Earth.
I challenge you to find me a bigger base.
Look at this thing:
The performance we’ve seen in precious metals this year looks like just the beginning.
I’m not betting that this is over just yet.
We’ve been allocating assets to these companies this year, and we’ll continue to add to them.
From my perspective, these stocks underperformed for so long that most investors completely forgot about them.
I think they’re wrong.
And now the chase is on.
Stay sharp,
JC Parets, CMT
Founder, TrendLabs