Gold Mines Are Literally Gold Mines

The GDX has been lagging gold's spectacular run over the last few weeks. The miners ETF isn't anywhere near its all time high while gold is. That could change soon.

“Gold mines are literally gold mines.” - Peter Schiff

I started this article with gold at about $2,050 and am finishing it with gold back under $2,000/oz, at about $1,991/oz. Such was the chaos that was the paper gold market over the last 48 hours. Regardless of where gold is trading when you read this, it doesn’t matter.

First and foremost, it finally looks like we are getting ready for gold to trade with a $2,000-handle relatively consistently.

Imagine that: $8 trillion on the Fed’s balance sheet, $30 trillion in debt and all of academia unanimously deciding that modern money literally has no substance to it – and we still needed a potential Third World War to get back over $2000 per ounce.

Yeah, nothing weird going on in the paper markets, right?

Regardless, the insanity in the world of commodities and the threat of the biggest war in Europe in more than 50 years - while Russia and China likely entertaining the idea of starting their own monetary and economic system backed by commodities - has finally given investors a wake up call they have needed for about a decade with regard to gold.